A sole proprietorship is typically a business owned and operated by one individual, or very often by a husband and wife. A sole proprietorship is not considered to be a separate legal entity under the law, but rather is an extension of the individual who owns it. The owner has possession of the business assets and is directly responsible for the debts and other liabilities incurred by the business. The profit or loss of a sole proprietorship is combined with the other income of an individual for income tax purposes.

Sanders & Shaw offer a free initial consultation and full hard-copy versions of the New Business Kit. If you would like more information about selecting a legal entity for your business complete the form below or call us on 020 7569 7160.