What is a Sole Proprietorship? How to Start Your Sole Proprietorship?

There are many types of companies in the business world. For those who want to have information about company structures or who want to start a company, the first type that comes to mind is sole proprietorship companies.

So what is a sole proprietorship? How to start it? And what are its features? Let’s explore together.

What is a sole proprietorship?

A commercial organization that can be started by one or more people, usually started by a single person in a simple manner, with all profit and loss responsibilities personal, is called a sole proprietorship. Sole proprietorships do not have a legal personality. The sole proprietorship does not have a different legal status than the business. As an example of a sole proprietorship name, the name and surname of the owner of the business are generally used as a commercial title.

The owner of the sole proprietorship assumes all positive and negative risks. In a sole proprietorship, there are usually no partners or few in number. Since the risks to be acquired in the sole proprietorship are quite large, the sale or transfer of the partnership share is difficult, if any, and is only possible with the joint participation and approval of all other partners. The sole proprietorship is directly responsible for all debts and liabilities. Profit and loss are processed on the person’s tax return.

The starting of sole proprietorships is quite common in the business world. Sole proprietorships are the most common form of business structure. Especially with the spread of the e-commerce phenomenon, sole proprietorships have become more widespread. starting and operating a sole proprietorship is simpler and faster compared to other types. In a sole proprietorship, there is more flexibility in the management structure because of the small number of partners or the presence of a sole proprietor mostly. The sole proprietorship has advantages such as having less legal control and being able to be started at lower costs compared to other company structures. How to choose liability insurance? Types of liability insurance

How to set up a sole proprietorship?

Once the decision to start a sole proprietorship is made, the procedures for starting a sole proprietorship will be extremely fast and practical. Generally, in private companies, the name and surname of the owner of the company are used and it is used as the company name by specifying the description of the service to be provided. The owner of the sole proprietorship can submit the documents to the tax office personally by preparing the documents required to start a sole proprietorship. The starting of a sole proprietorship can be carried out easily by giving the power of attorney of the business owner to the financial advisor or accountant on his own behalf.

Today, thanks to the rapid integration of the state infrastructure into the technological age, these transactions can also be carried out online by following the steps of the company starting through e-Government. The tax plate is taken after the bookkeeping procedures are completed and the inspection report of the tax office is awaited. Afterward, it is necessary to register with the relevant chamber of commerce. In order to open a company, a business license must be obtained. After the BAĞKUR application of the individual company, the company’s opening of the company is fully realized after the stamp printing of the company. The company can start its commercial activities by printing invoices, e-invoices, waybills, and expense receipts. The best insurance in 2022

In addition, the cost of starting a sole proprietorship is between 550-700 TL as of 2021. Regarding the closure of the sole proprietorship, the sole proprietorship can close easily and quickly, provided that the condition of actually leaving the workplace without entering the liquidation process, such as limited liability and joint stock companies, is provided. After completing the notification form for starting and quitting work, the petition for closure must be submitted to the tax office within one month. Then, after the cash register is reset, unused invoices and assets are reported, and the company’s closure process is terminated. Best Accident Insurance 2022 – Reviews and comparisons of car insurance companies

What are the documents required to start a sole proprietorship?

Address must be specified in order to prepare the necessary documents to start a sole proprietorship. The workplace address is to be specified and the home address can be specified if there will be home office working conditions. Other required documents are;

  • Workplace lease agreement or title deed if the workplace belongs to you
  • A residence document, which can also be obtained via e-Government
  • Copy of identity card
  • Two photos of the company owner
  • Accountant’s power of attorney, known from a notary public
  • A known personal signature statement from a notary public is required.

Is it possible to convert a sole proprietorship into a limited liability company?

According to the Turkish Commercial Code, an unincorporated individual company has the right to transform into a limited liability company with a legal personality by changing its structure. If a sole proprietorship is to be converted into a limited liability company of its kind, in case the company has multiple partners, it must also agree to a partnership with other parties. Apart from a limited liability company, a sole proprietorship can also be transformed into a collective company, joint stock company, limited liability company, or a cooperative.

The company becomes a legal entity by transforming the sole proprietorship into different types, such as a limited liability company or joint stock company, with all the assets registered on it, without making the closing registration of the business. Among the advantages of converting from a sole proprietorship to a limited liability company, all immovables on the sole proprietorship are exempted from all duties such as title deed, not paying taxes, transferring all vehicles belonging to the sole proprietorship to a limited liability company without tax, the right to use the VAT amount, which is the transfer in the VAT declaration, in the limited company as well. many advantages are known. What is the Internet of Things (IoT)? How does it work?

When it is decided to transform from a sole proprietorship to a limited liability company, that is, to change this type; Requested documents, type conversion report, type conversion plan, CPA or SMMM report in which the equity of the enterprise making the type change is determined, the final balance sheet and interim balance sheet documents are approved and submitted by the person when necessary, presenting the list of goods and rights that includes the determination of the value of the goods registered in the registries, Information such as CPA or SMM report and CPA / SMM activity document, business name of the business, address of the business should be presented with documents. The Best Home And Real Estate Insurance 2022

Finally, the great thing about a sole proprietorship is that you don’t have to put everything together at once. You can start a side business, test your theories, pivot, and even start over if necessary; all with little hassle or commitment. This makes it the ideal structure for turning the seed of an idea into your dream business. What is the UK Skilled Worker Visa? How to Get Skilled Worker Visa?

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