A Sole Proprietorship is a business owned and operated by one individual, with no legal distinction between the owner and business, impacting tax and liability.
- What is a sole proprietorship?
Answer: It is a business owned by one individual with no legal separation. - What are the benefits?
Answer: It offers simplicity and full control. - What are the risks?
Answer: Risks include personal liability for debts. - How is it taxed?
Answer: Income is reported on the owner’s personal tax return. - What role does HR play?
Answer: HR advises on compliance for small teams.
