Advantages of Sole Proprietorship

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The advantages of a sole proprietorship include being your own boss, having lower personal tax rates and netting more profit directly. Consider starting a sole proprietorship as a simple form of business with information from a portfolio manager in this free video on business strategies.

Part of the Video Series: Business Strategies
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Video Transcript

Are you considering setting up a sole proprietorship to run a new business? Hi, this is Roger Groh at Groh Asset Management. If you are, you're probably using a sole proprietorship because it's easy and it's simple. All you do is start operating. Well maybe not that simple, you still have to apply for licenses and the right to operate in whatever city or state or country that you're operating in. Other advantages, certainly if there are loses, they flow to you automatically and if there are gains in theory if your personal tax rate is lower than a corporate tax rate might be, then you end up netting more income from it. Last but not least, you might be your own boss if you're the only employee. Remember that a sole proprietorship is just a form of business. You can have thousands in theory and unlimited number of employees but usually it's some very small amount of employees doing very little business. Hope it helps, if it's your first time and you're only doing a little bit, think about it. I'm Roger Groh at Groh Asset, thank you very much for spending time with me.


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