Mahmudul Kader Siddque
Mohammad Tamzidul Islam
Brac Business School
Date Of Submission:
A sole proprietorship is a form of legal organization in which the owner maintains sole and complete control over the business and is personally liable for business debts. There are no legal requirements for establishing a sole proprietorship business other than obtaining the necessary local business licenses and permits. In a sole proprietorship, income and loses “pass through” to the owner and are taxed at the owner’s personal income tax rate. The biggest drawback, however, is the unlimited personal liability for any and all debts of the business.
A business owned and managed by a person is called sole proprietorship. Sole proprietorships are the easiest kind of businesses to explore in your quest for an interesting career. According to Wheeler “ The sole proprietorship is the form of business which is owned and controlled by a person individual”
Factors of Choosing sole proprietorship :
There are many factors of choosing sole proprietorship. These are following:
✓ Ease of starting and closing the business: A business man can start or close his business at any moment. ✓ Being your own boss: The business man is all in all of his business. He can do whatever he/ she wants. ✓ Pride of ownership: The business man achieves all credit for taking risks and challenges that’s why he/she has the right to proud. ✓ Leaving a legacy: Owners can leave an ongoing business for future generations> ✓ Retention of company profit: Owners not only keeps the profits earned but also benefits from the increasing value as the business grows. ✓ No special taxes: Govt. don’t give any taxes over this business....