Benefits of Sole proprietorship

Sole proprietorship is the easiest way of setting a business. As it has no hardship of gathering a group of capitalist, interchange of ideas and so on. In case of profit, business man can enjoy many things along with a huge profit.

Firstly, such kind of business is started at low level, so capitalist has to make investment at low level. He has to make face low cost in the production process.

Secondly, he doesn’t has to face any legal formalities, which consume a lot of time. It also consumes money to deal with legal formalities.

Thirdly, as he is solely responsible for the whole business set up, so he also enjos the profit given out of the business

Advantages of Sole Proprietor Form
The advantages of forming a sole proprietorship include:

·         Control
As the sole owner of the business, he has complete control over all the operations, and 

•  gets to make all the decisions. He doesn’t has a board of directors, shareholders, or other owners to answer to.
• Tax Preparation and Filing
  Sole proprietorship income taxes are easy to file, using Schedule C and adding the income/loss from the business to his other income on his personal tax return.
• Tax Rates
  According to the Small Business Administration, sole proprietorship tax rates are the lowest of any business form (13.3 percent tax rate as compared to 26.9 percent for S corporations). 
• Use of Losses
  Because he is including his sole proprietorship income/loss on his personal tax return, he can use any business losses to offset personal income from other sources. You do need to be careful not to run up against the IRS restrictions on "hobby" businesses which generate losses for years, but if you can prove your business is legitimate and not a hobby, those losses can lower your taxes.