The advantages and disadvantages of natural person sole proprietorships:
1. Advantages
1. The ownership, control, operation and income rights of enterprise assets are highly unified. This is conducive to keeping secrets related to business operation and development, and is conducive to the promotion of the owner's personal entrepreneurial spirit.
2. Business owners are responsible for their own profits and losses and have unlimited liability for the company's debts, which has become a strong budget constraint. The quality of business operation is closely related to the owner's personal economic interests and even his life and property. Therefore, the owner will do his best to run the business well.
2. Disadvantages
1. It is difficult to raise large amounts of funds. Because a person's funds are ultimately limited, it is more difficult to borrow a loan in an individual's name. Therefore, sole proprietorship limits the expansion and large-scale operation of the business.
2. Investors face huge risks. Business owners bear unlimited liability for the business, which not only hardens corporate budget constraints, but also brings about the problem of owners taking excessive risks, thereby restricting owners from investing in riskier departments or fields. This is extremely detrimental to the formation and development of emerging industries.
Extended information:
Policies for natural person-owned limited liability companies:
The finance departments (bureaus) and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning, Xinjiang Production and Construction Corps Finance Bureau:
After research, the deed tax issues regarding the free transfer of land and house ownership between natural persons and their sole proprietorships and one-person limited liability companies are now clarified as follows:
According to Article 7 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Certain Deed Tax Policies for Enterprise Restructuring and Reorganization" (Caishui [2003] No. 184), "During the process of enterprise restructuring and reorganization, land, buildings and The ownership is transferred free of charge and no deed tax is levied."
The free transfer of land and house ownership between a natural person and his or her sole proprietorship or one-person limited liability company is a free transfer of land and house ownership within the same investment entity, and no deed tax is levied in accordance with the above provisions. .
Baidu Encyclopedia-Natural Person Sole Proprietorship
State Administration of Taxation-About Natural Person Sole Proprietorship Policy