The ease of setting up sole proprietorships (One man business)

The ease of setting up sole proprietorships (One man business)

July 23, 2019

Sole proprietorships also widely known as one man business are very easy to set up and manage. It can be incredibly easy to set up hence its popularity amongst many business owners. So, apart from the fact that they are very affordable, the registration process is very straightforward.

Unlike limited liability companies, Sole proprietorships generally don’t need a list of directors or shareholders and you don’t need a Memorandum and Articles of Association (MEMART) but you are able to open and operate a corporate account in the name of the business. All that is required are the details of the proprietor, passport photograph and maximum of three (3) objects.

While setting up a sole proprietorship is easy and affordable, it is crucial to note that setting up your business as a sole proprietorship means that as the owner, you are held personally liable for business related obligations. You re personally liable for the debts of the business and your personal assets can be used to satisfy those debts if the need arises. Personal liability for business obligations stems from the fundamental legal attribute of being a sole proprietor. You and your business are legally one and the same person. In other words, it’s you trading under an alias.

The few set backs notwithstanding, sole proprietorships are very easy to set up and maintain and they are the most suitable for small, one owner managed businesses that require a little structure to operate.

Best regards,

Efe Ugboro

CEO, 618 Bees

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advise, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advise from the particular facts and circumstances at issue from a lawyer.

This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

More Articles

Search

Connect With Us

Got any questions?

If you are having any questions, please feel free to ask.

Send us an email

Frequently Asked

  • What additional documents do I require to file my Annual Returns?
  • Do I need a Company Secretary?

    A limited liability company (LLC) must have a company secretary.

  • Can I process/register multiple products at NAFDAC at the same time?

    Yes, you can process/register multiple products at the same time

  • Is there a penalty for late renewal of registration of products with NAFDAC?

    Yes, there is a late renewal fee, which is dependent on the category of the product.

  • How many shareholders do I need to start a company?

    A minimum of two (2) shareholders is required to form a company.

  • Why do I need a trademark?

    You need to register your trademark because if you don’t register it, someone else can! It helps identify you as the source ad indicates a consistent level of quality of your products and services. Securing a registered trademark protects your brand, and provides you with tools to prevent someone else from using similar signs and riding off the back of your business.

Call Us Now on +234 901 719 0079 Whatsapp icon Chat on WhatsApp