Sole Proprietorship’s Other Advantages

Becoming a sole proprietor brings forth a lot of so many reasons why it is considered a good decision. Like for shareholders of corporations in Alabama, the sole business owner is also provided with a lot of benefits which would ease away all the hardships that the venture would require. Indeed, running a business alone could be very exhausting, but who said it isn’t worth it?



Choosing to set up a sole proprietorship rather than an Alabama corporation, LLC or partnership would definitely allow a person to enjoy all the benefits alone. That includes the profit, which is the main objective why people do business. Sole proprietors are also endowed with full power over their respective companies; and save them from a lot of conflicts and misunderstandings with other company owners.
However, the usual are not just the only things in the list. Here are other advantages why it is good to become a sole proprietor:

1. No meetings necessary. 
Unless it is between the sole proprietor and the employees, there is no need for shareholders’ meetings – because to begin with, there are no shareholders in a sole proprietor. Thus, this would save the sole owner a lot of time and effort. Unlike in Alabama corporations, LLC or partnerships, there is no need for presentations and voting.

2. Freedom from paying double taxes.
The business legislation bodies in Alabama consider the sole proprietorship and the sole proprietor a single entity. Therefore, double taxation would not apply. In this kind of setup, the taxes imposed on the income of the company reflect on the taxes levied on the personal revenues of the sole proprietor. No need to settle two things at once. Sometimes, it would seem like one has to pay a larger amount, though. The same thing applies to LLC in Alabama.

3. Run the business according to personal preferences.
The sole proprietor, being the only owner of a business, may run his business according to how he wanted it to be. Less formality is needed; unlike in corporations in Alabama that requires a standard framework for its operation. The owner, being the person with the optimum power over a company, can do whatever he wants – so long as it would not affect the employees’ welfares.

4. Better rapport with employees. 
It is normal to see a sole proprietorship display a very good rapport with his employees. This is because a sole proprietorship allows the owner and the staffs to interact openly. Unlike in an Alabama corporation, the employees directly receive instructions from the boss, and the boss – being a good boss that he should be – can directly hear feedbacks from his staff. This creates balance in the professional relationship they have.

5. Better rapport with the customers.
The best thing about being a sole proprietor is that he can easily establish a good relationship with the customers too. This is made possible because sole owners tend to stay in the shops or offices, dealing with people personally.

There are more reasons why it is good to become a sole proprietor. For more information about it, consult business attorneys. They could also help you with your concerns about setting up Alabama corporations, limited liability companies and partnerships.