The biggest advantage with sole proprietorship is that it’s easy to start and it doesn’t need guaranteed capital (share capital). Other than that, we see no benefits using a sole proprietorship compared to a limited share company.
Sole proprietorship is a difficult form of business since there’s no clear boundaries between the owner and the company. This makes the individual’s total taxation hard to calculate and predict. Many using this company form also fail to clearly separate accrued taxes (such as VAT), their own money and the company’s money.
In this company form, simplified, the profit of the company is the owner’s salary. Many times there are reasons to set your salary more precisely than “just the profit”.
Above reasons makes us not recommend sole proprietorship if compared to a limited share company.
A sole proprietorship can be good as a fast start-up and for small businesses with limited profit and as long as it’s not used for borrowing untaxed money, which unfortunately is a common path to personal bankruptcy.