4 Benefits of a Sole Proprietorship

According to the IRS, “A sole proprietor is someone who owns an unincorporated business by himself or herself.” Often, those new to the business will start a sole proprietorship. This is the most accessible business type to set up and the least expensive. Versus an LLC or corporation, setting up a sole proprietorship is less hassle.

What Are The Benefits of a Sole Proprietorship?

  1. Starting a sole proprietorship is easy to do. There is no formal registration necessary. The only fees involved are those associated with registering a business name, but this will depend on your local government. You may need a license or permit to launch your endeavor, but that depends on your industry. So, you want to make sure you familiarize yourself with any requirements before establishing your business.
  1. You have complete control over your company. In many instances with a corporation or even LLC, custody is split among two or more people. With a sole proprietorship, you run the show. You do not have to consult with another person for company decisions, and you can determine which direction you want to take your business.
  1. Filing Taxes is Easy. Unlike a corporation, a sole proprietorship has what is called pass-through taxation. Your business pays no separate taxes and can be filed through your tax return. This avoids double taxation, which also saves you money. 
  2. . You get to keep your profits. Since you are the sole owner, you save the money you make.

According to Census data, 73% of all businesses are sole proprietorships. It’s the most popular business structure for a reason. So, should you set your company up as a sole proprietorship? 

Whether or not it is the proper structure for you will have to determine for yourself. It depends on your company type and your ultimate business goals. You might speak with a business attorney or a business accountant who understands the nature of business structures.

Choose First Union Lending

Whether you are a sole proprietorship, an LLC, or a huge corporation, we have the financing solution for you.

First Union Lending offers numerous financing programs designed with small businesses in mind. Our business loans are fast and flexible, with financing options ranging from $5,000 to $2 million.

We have the funds to help!

Call today to learn more about our various financing solutions to help your business grow and become successful.