uksikettevõte

Uksikettevõte, also known as a sole proprietorship, is a business structure where an individual owns and runs the business. There is no legal distinction between the owner and the business. This means the owner is personally responsible for all business debts and liabilities.

Establishing an uksikettevõte is generally straightforward and requires minimal paperwork compared to other business structures. The owner reports business income and losses on their personal tax return. This structure is common for freelancers, small businesses, and individuals starting out with a new venture.

Advantages of an uksikettevõte include ease of formation, full control for the owner, and simpler tax filing. However, the primary disadvantage is unlimited personal liability. If the business incurs debt or faces legal action, the owner's personal assets, such as savings or property, can be used to satisfy those obligations. Raising capital can also be more challenging as the business is intrinsically linked to the individual's financial standing. Transferring ownership or selling the business can also be more complex as it involves selling the individual's assets rather than a separate legal entity.