Üksikettevõtte

Üksikettevõtte, often translated as sole proprietorship or sole trader, is a type of business entity where an individual owns and runs the business. It is the simplest and most common form of business organization. In an üksikettevõtte, there is no legal distinction between the owner and the business. This means the owner is personally liable for all debts and obligations incurred by the business.

Setting up an üksikettevõtte is typically straightforward, often requiring minimal legal formalities compared to other business structures like limited companies. The owner is responsible for all aspects of the business, including management, operations, and finances. Profits generated by the business are considered the owner's personal income and are taxed accordingly.

The advantages of operating as an üksikettevõtte include ease of formation, direct control over the business, and simple tax reporting. However, the primary disadvantage is unlimited personal liability. If the business incurs debts or faces legal claims, the owner's personal assets can be used to satisfy these obligations. This structure is often chosen by individuals starting small businesses or freelancers who prefer a simple operating model and are comfortable with the associated risks. Registration and regulatory requirements for an üksikettevõtte can vary by jurisdiction.