THIS BOOK IS DEDICATED BY MY F.Y.J.C  STUDENTS.IN THIS BOOK GIVE STORY SOLE PROPRIETOR

INTRODUCTION OS SOLE TRADING CONCERN

Meet Monica. Monica's opening her own business! She's starting Monica's Monograms. Her monogramming business will be a sole proprietorship because it's an unincorporated business owned and run by only one person. Monica will be the only employee and will have complete control over the business.

Sole proprietorships are the most common and the most straightforward type of business structure. They aren't really considered to be business entities because there's no legal set-up. There's also no legal distinction between the owner and the business. Monica and Monica's Monograms are treated as the same entity.

This means Monica can keep all of Monica's Monograms' profits. However, Monica is also personally responsible for her business' debts and losses. The business' income counts as Monica's income so she'll be personally responsible for paying those income taxes. The business won't be taxed separately like it is in other business structures.

This all sounds good to Monica, but first she needs to know what to do in order to structure her business. Monica doesn't need to do anything at all in order to form a sole proprietorship. Monica's Monograms is assumed to be a sole proprietorship the moment Monica starts doing business.

There's just one item Monica will want to look into. Since Monica's business name is different than her name, she'll need to file the business name with the government. This is usually done through her Secretary of State's office, though the procedure varies from state to state.