If you’re thinking about starting a sole proprietorship, there’s enough and more reasons to do so. If you’re on the fence, you soon won’t be. Below, we’ll be running through all the benefits you’ll reap, so read on.
You Have Privacy
If you were to form any other type of business, you’ll have to report to the government constantly. At the end of each year, you’d have to submit records to show them how well you’ve done, and to let them know how much you owe them.
This means they have access to how well your business is performing. Depending on the type of person you are, this could be something you don’t want to happen.
Thankfully, you don’t have to worry about this if you start a sole proprietorship. There’ll barely be anything for you to submit. However, you still have to register for things like ABN and calculate your GST, which would be done here, www.gstcalculator.org.au.
You Have Independence
If you’re a free thinker, running a sole proprietorship is great. You are your own boss and you have no one else to answer to. This is especially great considering you make all the decisions. If your business becomes very successful, you can be proud knowing that it got to this level because of the decisions you made. Not only would this boost your ego, it would improve your drive, making you make better decisions
You Keep All the Profits
Yes, that’s right, all the money goes to you. If you have business partners, the money you make would be split amongst all of you. If you run a corporation, all your cash would be split between the shareholders. With a sole proprietorship, in the end, you’ll be left with a huge sum without anything cut from it.
Thankfully, it’s not hard to form a sole proprietorship, so if this point resonated with you, you know what to do.
You Don’t Need to Hire Employees
When it comes to sole proprietorship, you don’t have to hire employees. It isn’t a must as you can do everything yourself. This is great as this means more money to yourself.
Of course, this may be difficult as with your business’ growth, you’ll need more people to help you get what you want done.
Nevertheless, you won’t ever need as many people as with other business structures.
You Can Work from Home
As it’s just you, business can be done from home. This is very beneficial as rent can be very expensive. What’s more, you won’t have to deal with commutes which would help you put more time and effort into your work.
One of the major benefits of starting a sole proprietorship is the fact that your taxes are so limited. The government knows it’s just you working by yourself, so you have less things to pay. As a result, you have limited paperwork to submit.
Nevertheless, it’s easy to see why starting a sole proprietorship is so beneficial. So, what do you think?