What's the difference between a sole proprietorship and a one-man joint stock limited company in financial management?

The difference of financial management between a sole proprietorship enterprise and a one-person limited liability company;

1. Different investors: the investor of a one-person limited liability company can be a natural person or a legal person; A sole proprietorship enterprise has only one investor, namely a natural person. The responsibility shall be borne by the sole proprietorship enterprise.

2. Different legal forms: a one-person limited liability company is a legal civil subject with legal personality, while a sole proprietorship enterprise is not.

3. The establishment conditions are different: the contribution of a one-person limited liability company shall not be less than 30% of the registered cost, while the sole proprietorship enterprise has not made any mandatory provisions on the contribution.

4. Different tax regulations: a one-person limited liability company needs to pay enterprise income tax, while a sole proprietorship enterprise does not need to pay individual income tax.

5. Investors bear different responsibilities: the shareholders of a one-person limited liability company bear "limited liability" to the extent of the subscribed capital contribution, while the investors of a sole proprietorship enterprise bear unlimited liability to the company with their personal assets.

6. Different financial and accounting requirements: A one-person limited liability company shall prepare a financial and accounting report at the end of each year, which shall be audited by an accounting firm. A sole proprietorship enterprise only needs to set up accounting books for accounting according to law, and does not need to be audited by an accounting firm.