Definition :
In simple words, A sole proprietorship may be understood as a corporation with no separate legal entity and having only one individual paying specific income taxes on gains received from the corporation. Owing to an absence of governmental control, a single proprietorship is seen as the simplest form of corporation to create or tear apart. These forms of companies are also very common among single holders of companies, independent self-contractors as well as free lancer consultants.
Due to lack of paperwork and other such formalities to operate, these kinds of business structures are very easy to maintain and operate. Usually, the sole owner of the business provides for the capital and bears no liability of fixed payments such as debt issues by incorporated entities.
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