uksikettevõtlus

Uksikettevõtlus, often translated as sole proprietorship or one-person business, is a business structure where a single individual owns and operates the business. The owner is personally liable for all business debts and obligations. This is a common and simple business structure, particularly for freelancers, small service providers, and individuals starting out with a new venture.

The advantages of uksikettevõtlus include ease of setup and minimal administrative requirements compared to more complex structures like limited liability companies. The owner has complete control over decision-making and retains all profits. However, the primary disadvantage is unlimited personal liability. This means that personal assets can be used to satisfy business debts.

Taxation for uksikettevõtlus is typically handled through the individual's personal income tax return. Profits are considered personal income and taxed accordingly. Record-keeping is still necessary to track income and expenses for tax purposes, although it is generally less burdensome than for corporations.

Many entrepreneurs begin their journey with uksikettevõtlus due to its simplicity and low startup costs. As the business grows and its financial risk increases, owners may later consider transitioning to a different legal structure, such as an OÜ (Osaühing, equivalent to an LLC), to protect their personal assets. The decision to adopt uksikettevõtlus is often driven by a desire for independence and straightforward operations.