As we mentioned in the previous article, sole proprietor is responsible for every aspect of their business and they may hire others to carry out these duty.

I. Set up and continuation is uncomplicated.

1. Register a name for the company and renew it as required by law and obtain necessary licenses.
2. A sole proprietor keeps all the gains and is responsible for all the losses.
3. Company incomes are treat as personal income therefore sole proprietorship only pay personal taxes.
4. They also have the power of the right to borrow funds for operating capital or estate settlement needs.
5. The power to change the form of business.
6. Their personal saving bank account is the business capital account.
7. Pay and deduct wages to family members who are usually taxed at a lower rate than the owner.
8. All their personal and business assets are subject to claims of creditors.
9.All loan financing are limited to personal and business assets available as collateral.
10. The business ceases at the death or the owner.

II. If the owner wishes the business to continue, they should:

a) Stipulate in the will that the executors and trustees are not responsible for the deceased's prior business debts as well as subsequent business debts incurred while carrying out their duties.

b) The will should state how the business is to be disposed of.

c) The executors should execute the buy-sell agreement, if one exists.

I hope that this information will help you to understand the advantage and dis-advantage of sole proprietorship. If you need more information, please visit my website at


Article Source: http://EzineArticles.com/?expert=Kyle_J_Norton

One of the first things you should think about when you start a business is buying insurance. The costs of comprehensive business insurance are small compared with the risks that you are taking if you don't have insurance.

There are some very easy ways to find the cheapest insurance and the cover that is right for your business. Using the internet is a great way to compare different quotes. If you can see quotes from leading insurance providers side by side it makes it easier to choose the cheapest cover and the one that suits your business the most.

The type of business insurance you should have for your business depends upon the business you run and the activities you do. In the UK one of the most common types of insurance is Public Liability Insurance. It forms the core of many business insurance policies.

Public Liability Insurance protects your business against claims for any injury or damage your business activities may cause to another person or their property. This is an especially important cover for businesses that have people visiting their premises or go out and visit other people's premises.

Professional Indemnity Insurance is another cover that is designed for consulting businesses such as Business Consultants. This protects them for claims against them due to advice given which may have caused a financial loss for a client.

Employers Liability Insurance is a cover that is a legal requirement for companies in the UK. It protects businesses for claims made by employees if they are injured or fall ill whilst at work due to their employers negligence.

Other additional covers included with business insurance could be Tool and Equipment Insurance, Business Buildings Insurance, Commercial Vehicle Insurance, as well as any other cover you think you may need depending on the type of business you run.



Article Source: http://EzineArticles.com/?expert=Patrick_T_Martin

Business insurance is something that every business needs. It doesn't matter what type of business you are in, you will need to be insured.

Something that does matter however is the type of insurance you buy for your business, and this does depend on the business you are in. If you are in a consulting type of business in the UK you will need Professional Indemnity Insurance.

This insurance will cover you for the advice you give to clients. If the advice you give causes a client to suffer a financial loss, your Insurance should cover the cost of the claim. The risks of not having this cover are high because the potential costs of a claim could well be substantial.

An example of businesses that would need Professional Indemnity Insurance would be Management Consultants, Design Consultants, IT Consultants and many other similar consulting type businesses.

Along side this insurance your business may need to have other covers depending on what they do. In the UK it is common to buy Public Liability Insurance, and is often a legal requirement for a business. This is designed to protect your business against claims if you in the course of your business activities accidentally cause injury or damage to another person or their property.

There are many other different types of cover you can buy for your business that are often included with certain business insurance packages and also offered as additions. Tool insurance and business equipment insurance are examples of this.



Article Source: http://EzineArticles.com/?expert=Patrick_T_Martin