An Overview of a Proprietor
One of the several types of businesses that exist is that of a proprietorship. A proprietorship is when there is one particular individual, or several individuals, who have been given the exclusive rights to a business. This means they own all the legal rights and are subject to all legal procedures regarding their business, the transactions of the business, and even the allegations that are brought forth against the business. The individual who has all of these rights is called the proprietor.
Proprietor Background
Becoming a proprietor occurs through the acquisition of a business, in which custody becomes the complete responsibility for one individual or for a group of individuals. With this type of business there is no distance between the actions of the business and that of the proprietors. If debt is accrued or if there is a complaint that is put against the business, it is subsequently a debt or a complaint that has been made against the proprietors as well. It is the legal responsibility of these individuals to take care of all aspects of the business.
Sole Proprietorship
Sole proprietorship means that one individual has all the exclusive rights to a particular business. From the financial aspects to the business details and customer service, each little facet is the responsibility of the proprietor. This means that legal actions that are taken against a business are made the responsibility of the proprietor. In regards to the aspect of income and taxes, this is where a sole proprietor has the advantage over corporations because it gives more money back to the business and the proprietor without the excessive taxing.
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