Pros of Sole Proprietorships
- Sole proprietorships are easy to set up and easy to disband. Generally, business registration is not required. But, to get a bank account and to have others treat you as a business, you will likely need to get a company registered with the Registrar of Companies (see registering your business).
- Easier bookkeeping because the owner and business are treated as one entity (but - you should still keep separate records for your business as ZIMRA does audit sole proprietors)
- Profits are taxed at the owner’s individual tax rate so the owner does not need to file additional corporate paperwork as is necessary with the corporate business structure
- Sole proprietorships do not file corporate income tax returns
Cons of Sole Proprietorships
- The primary disadvantage of the sole proprietorship business structure is liability--the owner's personal assets are not protected because the company and the individual are treated as one entity