uksikettevõtja

An uksikettevõtja, which translates to sole proprietor or sole trader in English, is a type of business structure where an individual is personally responsible for all aspects of the business. This is the simplest and most common form of business ownership. The uksikettevõtja is the business; there is no legal distinction between the owner and the business entity.

This structure means the individual owner makes all decisions, receives all profits, and is liable for all debts and obligations of the business. This personal liability extends to their personal assets, meaning creditors can pursue the owner's personal property if the business cannot meet its financial obligations.

Setting up an uksikettevõtja is generally straightforward, often requiring minimal paperwork and registration compared to more complex business structures like limited liability companies. Taxes are typically paid on the business profits as part of the owner's personal income tax return. There is no separate corporate tax.

The advantages include ease of formation, direct control over the business, and the simplicity of tax reporting. However, the significant disadvantage is unlimited personal liability, which can be a major risk. As the business grows, many uksikettevõtjad may consider transitioning to a different legal structure to limit their personal exposure.