When an entrepreneur opts for a sole proprietorship, he or she has more freedom. However, this legal form does not have only advantages. Indeed, it also means more financial responsibilities.
Compared to the SA or SARL, opting for a sole proprietorship allows you to enjoy great freedom in the management of your business. It is quite possible to create this type of company without minimum capital. In addition, double taxation of profits is not applied since the company and the entrepreneur are considered as one and the same person. This is a major tax advantage over corporations. To establish this type of industry, very little cost and formality is required when registering in the Commercial Register. In addition, the administrative costs are much lower than for other legal forms.
However, it should be noted that the entrepreneur himself is liable for his commercial and private fortunes. The name of the owner will necessarily appear in the company name, which leaves very little room for anonymity. The responsibility of the company rests entirely on the shoulders of the entrepreneur. This means that the latter risks incurring severe debt proceedings in the event of bankruptcy. In addition, since the taxes are not separate, they are likely to be quite substantial given the current progressivity of their rate.
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