Do I Need To Register A Sole Proprietorship In Texas

Introduction to Sole Proprietorship

Sole trader-ship or proprietorship is the oldest form of business in all the countries of the world. Forth with the progress of the business, its class has also been irresolute. But due to its simplicity, quick germination, and easiness, this form is the about popular and in exercise in the world.

One human's business is best in the world if that i man is large enough to manage everything.

Pregnant of Sole Proprietorship

Sole tradership (proprietorship) is a form of business system whose possessor is but one person, who is called the sole trader. This person invests upper-case letter in the business and is solely responsible for all the profits and losses of the business organisation. The same person is the managing director and organizer of the business.

Definition

According to Prof Hynes

Sole Proprietorship is that grade of concern that has a single owner, who has the total responsibility of the business, who runs the business organisation and too bears the risk on the failure of business organization.

Despite high mortality, the sole entrepreneur survives.

In the words of Dr. John A Shubin

Under the Sole Trader-ship Concern, a single man is an organizer; he is the owner and runs the business by his ain proper noun.

Characteristics of Sole Trader-ship (Proprietorship)

1. Sole Ownership

   A single person is an owner of this type of business. That person is responsible for all the things relating to the business concern. He himself bears all the hazard and organizes the whole business. On the closure of the business, he is personally liable for all gains and losses.

2. Unlimited Liability

   The liability of a sole trader is unlimited. On the occasion of any loss in the business concern, not just the business avails but as well the private avails of the sole trader (business firm, shop or land, etc.) can be sold for recovery of losses.

3. Limited Piece of work Area

   The work of a sole proprietor business concern is limited considering the capital letter acquiring, and organizational skills of a person are limited. Thus, the progress of the sole proprietorship is express to the resources of its owner.

4. Sole Correct on Capital

   The system of Capital to be invested in the sole trade has to be done by the proprietor. Thus, he has full rights to the upper-case letter.

5. Sole Management

   The sole proprietor is himself responsible for the control and management of the concern. With the expansion of the business, the proprietor tin organize staff for his convenience, but he himself is accounted to be responsible for the work done by the managers.

6. No Legal Formalities

   To start the business of the partnership or Joint Stock Visitor, some legal formalities like registration, etc. are required, but the sole proprietor demand not fulfill any such formalities before starting his concern, and the business can exist easily started.

7. Free to Select his Business organization

   The sole proprietor tin select any business according to his abilities and will and can make any changes in his selection of business when required.

8. Willful Commencement and Closure

   The sole trader tin can commence or shut his business any time he wants. He need not fulfill any legal formalities for these.

Source: https://www.AllExamNotes.com/2018/03/sole-proprietorship/

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