The advantages of Sole proprietorship business

             1. LESS PAPERWORK 

Sole proprietorships has less legal requirements as compared to other business structures, like partnerships and limited liabilities. Legal requirements for businesses usually involves registration with appropriate authorities, which requires filling of forms. The forms you would have to fill set up sole proprietorship is usually less; other business structures requires you to fill myriads of forms. But there is no such law in sole proprietorship. In fact in most countries you generally do not need to register with your state; you simply become a business entity by doing business. 

At most, you would be required to get a license or permit, which is usually easy to obtain, and begin, without going from one office to another and obtain and fill one form after the other. This gives room for fast setup of your business, since the legal requirements, for it is not difficult to fulfil. Suppose you have to fill many forms and wait for many many weeks or months for response from authorities, before starting, there would occur a delay in the formation, thus your dream would take time to fulfil. This is usually the case for partnerships. You would fill one form after the other, and the government agents would usually do certain considerations which takes time before they give you feedback. If you want to start a business that the formation does not take time, sole proprietorship is an option for you.

                     EXAMPLE 

One business that exemplifies sole proprietorship in Nigeria is Truck-pushing. It involves the usage of Gallons for the selling of water. The trader usually fills the Gallons with water and puts the Gallons in a Truck, by means of which he distributes them to his customers according to their demands. You would find many Truck-Pushers in the streets, it is a common business. 

This business is characteristically a sole proprietorship; judging from consideration. It is established by one man, who manages it and reap it's benefits.

To start this business as examples testifies, one has to buy a Truck and Gallon, fill them with water and supply to his customers. All the starters do is to start trading when they purchase those materials, they do not register or even obtain any permit. 

If you aspire to start this business paperwork processes that it is void of would not pose any delay in your establishment. And so is it applicable with everyone it's kind.

      2. SMALL CAPITAL REQUIREMENT 

 Since the business is usually small, not complex and does not have personnel's which the proprietor would always pay, the money used in managing it, and particularly starting it, is usually small. This very factor, makes it easy a business to start. Since the capital is not much, it is easy to raise it. 

We have already established Truck-pushing to be an example of sole-proprietorship. And proves beyond doubt that it's formation has less legal requirement. But what about another aspect of it which is capital? That it is a sole proprietorship and characteristically small in size does not mean that it does not require capital. We know to be a truism that there is no business that does not require capital to establish. 

The truck pushing business requires only few things to be established. Namely; Truck and Gallon. Those materials are very cheap when compared to the bulky and expensive materials usually used in large companies of partnerships. 

                 3. SOVEREIGNTY

A lord has the right to exercise sovereignty over what is his. As the Lord and owner, he alone is due sovereignty and is usually recognized as the Lord. 

When there are two lords over an entity, sovereignty over it would be shared between them . A lord has the right to exercise sovereignty over what is his. Since each of the persons that has lordships are of that status, they must, like two people who both own a cake, share it between themselves. One person cannot choose to deny the other person the right to, both of them has the right to.

None of them,  isn't lord, therefore they are all going to exercise sovereignty together. 

The sole proprietor has no co-lord. He is the only one that is the lord of his business. So therefore, only he would exercise sovereignty; he would not have to share this power with anyone. Whatever he 

As the lord he needs not engage in any long process that involves consulting with others before he takes a decision. He has the right to make whatever choice he wants. He decides the time of operation, the cost of products or services. No one can deny him this right, no one else owns it. In matters, he could just wake up and give his verdict. Since, sometimes taking the right step on time could help to prevent certain problems and make a difference, the fastness of decisions by the proprietor is thus of advantage. 

Would you want to be at liberty to drive and chariot your business to wherever and however suits you? Would you want to have unrestricted or unlimited authority over your business? Do you want to do anything that you want- run the business as you want weather others like it or not? Then, sole proprietorship is the kind of tool that you can use to achieve this form of benefit. 

            4. EASY MANAGEMENT 

 The sole proprietor can easily manage the business because it is small not complex. It is usually void of the complex management features and processes found in other kinds of business

       5. ENJOYMENT OF PROFIT ALONE

 The most interesting and enticing benefit of sole proprietorship is that the profits made at the end of the business day or period would belong to no one else but the proprietor. He does not have to share it with others, which would limit his share, he takes home every profit. Since the capital was sourced from him, he has the right to. Since there is no one else that is a shareholder of the business, he alone reaps the benefit of the business. 

   6. CAPABLE OF THRIVING IN ALL BUSINESS ENVIRONMENT 

Due to its simplicity it is more likely than other businesses to thrive in any kind of environment. 

                       7. PRIVACY 

 The proprietor does not have to fear about losing his secret. He alone exercises sovereignty. He is not required to share or publish an account or submit an audited balance sheet, to any superior authority. He could keep the secrets of his business.

      8. CLOSENESS WITH CUSTOMERS 

The sole proprietor has a chance of developing closeness with his customers. They easily have access to him. He is involved directly in every process of the business. This would allow him to learn and give special attention to the needs of the customers. 

            9. EASY TAX REQUIREMENT

In some countries, sole proprietorships are tax-exempt. They are not expected to pay tax. When a business isn't expected to pay tax, there would be no deduction from their profit, money for tax which would lessen their profit. 

An example is the Truck-pushing business that we cited. I have engaged most of them in conversation, and enquired if they pay tax, and they revealed they do not. 

In countries where they are expected to pay taxes, fulfilling it is easier. The reason is connected to how taxes are paid. In other businesses tax payment requires application of certain identity cards, like the E.I.N- Employer Identity Number, with the I.R.S, which takes time to obtain. But sole proprietorship does not have that requirement. 

Sole proprietorships in some countries receive up to 20 percent tax deductions. The more tax a business has to pay, the more deduction they would make from their profit, but the lesser tax a business has to pay, the more capital it would have. So this is an advantage to a sole proprietor. If you want a business in which you would face tax challenges, sole proprietorship is an option for you.

          10. FEWER BUSINESS FEES

Some countries require partnerships and Limited companies to register before they can start business. This has been established. They have to pay monthly or yearly fees that can add up fast. For the sole proprietor this fee is not a requirement. He is exempted from paying. If he has to pay, he would deduct money from his capital. But because he is not expected to, he would be saving up on them. Thus there would be more boost to his capital, which he could tap into to expand his business. Even in the case where he is expected to, the fee is usually very meagre when compared to partnerships and Limited Companies. 

It is important to consider the voidance of those fees as advantageous because they are usually very expensive; so while partnerships are losing bulky amounts from their capital, he is adding up to his.

          13 BANKING ADVANTAGE

In entirety sole proprietorships are the only kinds of business that does not require business checking accounts in order to operate a company; they can make transactions and receive payments directly from their personal accounts.