enkeltpersonfirmaer

Enkeltpersonfirmaer, also known as sole proprietorships, are a common business structure where a single individual owns and operates the business. This structure is characterized by its simplicity in setup and management. There is no legal distinction between the owner and the business; therefore, the owner is personally liable for all business debts and obligations.

To establish an enkeltpersonfirma, typically only registration with the relevant authorities is required, depending on the jurisdiction. Unlike corporations, there is no need for separate legal registration or incorporation. The profits generated by the business are considered the personal income of the owner and are taxed accordingly. Similarly, any losses incurred can usually be offset against the owner's other personal income.

This business form is favored by entrepreneurs who want to start a business with minimal administrative burden and low startup costs. However, the unlimited personal liability is a significant consideration. If the business incurs debt or faces legal action, the owner's personal assets, such as savings or property, are at risk. This lack of liability protection is the primary differentiator between an enkeltpersonfirma and other business structures like limited companies.