1. Trouble-free Establishment :-
The sole proprietorship business is very easy to establish. It doesn't require much legal formalities. And there is no need to get into any agreement with some other person or go through registration procedures.
2. Effortless Functioning :-
The proprietor themself has the complete control and, therefore, he/she doesn't require to discuss their decision with any other person, Moreover, he/she knows their employees personally and he/she is the only person dictating the entire team, therefore, he/she is able to ensure that they work as a team. Also the decisions made are quick and easy to bring in force.
3. Sole Profit Entitlement :-
No other business, other than a sole proprietor business, rewards the owner with full profit entitlement. In all the other business like partnership, LLP, or a company the gains are always distributed among the partners or the shareholders of the business at a predefined fix ratio.
4. Taxation Advantage :-
The proprietorship business has many different taxation advantages :-
The proprietorship business doesn't require any complex compliance ordinances, it's usually very minimalistic because of the fact that the proprietary business is not registered with any Government authorities like the Ministry of Corporate Affairs. Further, the proprietor is free from Double- taxation, unlike all the other kinds of businesses. Also, there is no need of filling a separate tax and the proprietor is only required to file income tax returns if the firm has taxable income of more than Rs.2.5 lakhs per annum. All the Income Tax provision will be applicable as applicable to Individual person.