Scribd Logo
Upload

Welcome to Scribd!

  • 34 views

    Company Organizational Structure: Advantage of Sole Proprietorship

    Uploaded by

    alimoya13
    The document describes the organizational structure and advantages of a sole proprietorship business model. A sole proprietorship is owned and run by an individual, with no legal distinction between the owner and the business. The owner receives all profits and is responsible for all losses and debts. Key advantages include no separate business taxes, complete control over the business, minimal legal costs to start up, few formal requirements, simplicity of formation, ease of changing structures if needed, and sole retention of profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Company Organizational Structure: Advantage of Sole Proprietorship

    Uploaded by

    alimoya13
    34 views2 pages
    The document describes the organizational structure and advantages of a sole proprietorship business model. A sole proprietorship is owned and run by an individual, with no legal distinction between the owner and the business. The owner receives all profits and is responsible for all losses and debts. Key advantages include no separate business taxes, complete control over the business, minimal legal costs to start up, few formal requirements, simplicity of formation, ease of changing structures if needed, and sole retention of profits.

    Original Description:

    OWNERSHIP

    Original Title

    Ownership (1)

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document describes the organizational structure and advantages of a sole proprietorship business model. A sole proprietorship is owned and run by an individual, with no legal distinction between the owner and the business. The owner receives all profits and is responsible for all losses and debts. Key advantages include no separate business taxes, complete control over the business, minimal legal costs to start up, few formal requirements, simplicity of formation, ease of changing structures if needed, and sole retention of profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    34 views2 pages

    Company Organizational Structure: Advantage of Sole Proprietorship

    Uploaded by

    alimoya13
    The document describes the organizational structure and advantages of a sole proprietorship business model. A sole proprietorship is owned and run by an individual, with no legal distinction between the owner and the business. The owner receives all profits and is responsible for all losses and debts. Key advantages include no separate business taxes, complete control over the business, minimal legal costs to start up, few formal requirements, simplicity of formation, ease of changing structures if needed, and sole retention of profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    COMPANY ORGANIZATIONAL STRUCTURE

    The PITAHAYA ORGANIKO will operate as sole proprietorship type of business. It is also known
    as the sole trader or simply proprietorship as a type of business entity which is owned and run
    by individual and it which these is no legal distinction between owner and the business. The
    owner receives all profits (subject to taxation specific to the business) and has unlimited
    responsibility for all loses and debt.

    ADVANTAGE OF SOLE PROPRIETORSHIP

    1. NO TAX
    -In this type of business, there are no specific business taxes paid by the company. The
    owner pays taxes on income from the business as part of his or her personal income tax
    payments.

    2. COMPLETE CONTROL/ POWER OVER BUSINESS


    -An individual proprietor owns and manages the business and is responsible for all
    business transactions. The owner is also personally responsible for all debts and
    liabilities incurred by the business. A sole proprietor can own the business for any
    duration of time and sell it when he or she sees fit. As owner, a sole proprietor can even
    pass a business down to his or her heirs.

    3. MINIMAL LEGAL COST FORM


    -Sole proprietorship less costly to start a business as a sole proprietor, which is
    attractive to many new business owners who often find it difficult to attract investors.
    4. FEW FORMAL BUSINESS REQUIREMENTS
    Sole proprietorship need to company w/ licensing requirements, but are substantially
    less than those of corporations, allowing sole proprietors to open a business quickly and
    with relative ease.

    5. FORMATION
    One advantage of starting a sole proprietorship is the simplicity of formation. Very little
    paper work is required if you choose to file your business name. In most cases, you can
    visit your local courthouse and complete a "Doing Business as" or a fictitious name form
    to operate under your business name. A small fee is required for completing the
    paperwork. You are then given a certificate with the name of your business. Use the
    certificate to open bank accounts and apply for business credit cards. Unlike other
    business structures, individuals owning sole proprietorships are not required to file
    annual reports or legal documents required by some other business structures.

    6. CHANGING BUSINESS INSTRUCTURE


    If your business grows to a place that the business structure of a sole proprietorship no
    longer works to your advantage, you can easily change your business structure to a
    more complex model. The only requirement for going from a sole proprietorship to
    another business structure is filling out the paperwork for your new business structure.
    You are not required to fill out paperwork with a regulatory body because sole
    proprietorships are not governed by regulatory bodies.

    7. DISTRIBUTION OF PROFITS
    Sole proprietors are the sole owners of their businesses and do not split profits with
    other owners. One hundred percent profit retention allows sole proprietors to use the
    money at their discretion. You can choose to reinvest the money back into the business
    to expand the company, start another business or use it for personal reasons.

    You might also like