With a small amount of money, a sole proprietorship business can be started at home or in a building. The single founder or owner who puts money into the business is the only one who can run it. He keeps all the money the business makes and all the money it loses. Even though he can hire people to run the business, he will still own it exclusively. 

As a sole proprietorship company, you can start a lot of different kinds of local businesses, like grocery stores, salons, boutiques, retail stores, and more. You don't have to be a big business to start a sole proprietorship. 

Who can choose to be a sole proprietor? 
This type of business can be used by anyone who wants to start a business with little money. It's possible to start in 10 to 15 days. Also, you are the only one who can run the business. 

Pros of Being a Sole Proprietor 
Not as many changes 
it’s easy for one person to start a sole proprietorship business. There are basic requirements that must be met in order for it to be included. This type of business is cost-effective because it costs less to start up than a company or LLP. 

Running the business 
the sole owner will run the business by themselves. He'll be in charge of everything in the business. The business can stay secret because there is only one person running it. 

Making decisions quickly 
the business is run by a single owner who makes all the choices. One person is in charge of making decisions. Without having to talk to anyone first, the decisions can be made fast and right away. 

Cons of Being a Sole Proprietor 
No limits on responsibility 
the sole owner is responsible for everything that goes wrong. He is legally responsible for everything he does in the business. If there is a loss, he will have to pay for it all out of his own money. 

There is no endless repetition 
since there is no perpetual succession, the business can end if something happens to the person who is running it alone. It could shut down at any time. This makes the company unreliable, and it's hard to get people to trust it enough to sign deals or contracts that will help it grow. 

Not easy to get money 
It is hard to get money for the business because it is run by one person. The cash of the business comes from the investments made by the one-person business. The sole proprietorship business is not a different legal entity from its owner. It is hard to get money from outside sources because it can end at any time and there is no separate body. 

Getting a sole proprietorship registered 
the steps for forming a sole proprietorship business are 

Trying to get a PAN card. 
The next step is to keep a name for the sole proprietorship business after getting a PAN card or if the owner already has one. 
Next, open a business bank account. This bank account is where the business will do all of its work. 
A sole proprietorship company does not need to get any special registrations in order to start up, but it does need to get some basic registrations in order to run its business. A sole company needs to make the following basic registrations: 
Under the Shops and Establishment Act of the state where the business is based, the owner needs to get a Registration Certificate. 
If the business makes more than Rs.20 lakh, the single proprietorship should also sign up for GST. 
A sole proprietorship can also apply as a Micro, Small and Medium Enterprise (MSME) under the MSME Act. While not required, it is advisable for the business to do so. 
What you need for a Sole Proprietorship 
For a sole proprietorship to be registered, the following papers are needed: 
-The Aadhaar card. 
-A PAN card. 
-Proof of registered office. 
-Money in the bank. 
-For a sole proprietorship, you need a checklist. 
-ID card of the owner (PAN card). 
-The business's name and address. 
-Set up a business bank account. 
-The shop must be registered under the state's Shop and Establishment Act. 
-If the business makes more than Rs.20 lakhs a year, it needs to be registered under GST. 
What kinds of compliance are needed? 
If you are a sole owner, you need to file an Income Tax Return every year. If you are registered for GST, you also need to file your GST Return. If they are subject to a Tax Audit, a sole proprietor should also deduct TDS and make a TDS return. 

When to register as a Sole Proprietorship 
To become a sole owner, you need to get a PAN card, open a bank account in the Business’s name, gets a Certificate of Registration under the Shop and Establishment Act of your state, and register for GST. The registration process takes about 10 days, but this depends on the department's approval and the response from that department.

4. Partnerships

Partnerships are formed to share resources and establish a company. Deal partners are parties. Partners share revenues and losses in a partnership. Partners share company management and profits/losses. Partnership companies are owned by its partners. All partners and the company are affected by what one does. Business partners may form several relationships. 
Different Partnership Types
Duration and responsibility determine partnership types. 
A. Based on Duration 

1. Willing partnership 

When a partnership terminates, the contract normally states what occurs. A partnership at will is one that doesn't follow that rule. This moniker implies that its fate relies on the participants. It may last as long as the couples wish and stop when one provides notice. To have a partnership at will, the arrangement should not specify a date or termination instructions. This kind of collaboration works effectively for firms that don't vary during the year and where the partners don't know when it will terminate. 
No formalities make it easier for partners to create a relationship anytime. The indefinite partnership makes it easy for partners. If one partner delivers the termination notice, the relationship might dissolve immediately. This Partnership at Will perk might be problematic for certain partners. If one partner quits, the others can't keep the business operating. Partners in a Partnership at Will are also liable for each other's theft or unethical behavior. 

2. A durational Partnership 

A fixed-term partnership lasts a certain period. Partnerships end on the date specified in the deed unless otherwise stated in the contract. Business must continue after the partnership arrangement ends. The partnership becomes "at will" and each partner has the same rights, obligations, and responsibilities. Business partnerships like this function successfully when both participants know what the business is and how long it will endure. 
It may be terminated by all partners, unlike a Partnership at Will. This benefits it. Fixed-term agreements provide the firm certainty and direction, unlike partnerships at will, where everything depends on the partners. However, relationship duration may be disputed. Partners' desires determine the length of a relationship. Partner's constant duty may also be difficult. 

3. Specific Relationship 

Each partner works on one business initiative. This partnership is for long-term business or one-time work. This form is suited for a corporation when everyone agrees to close and divide profits. 
Partners agree to discontinue a Particular Partnership, unlike a Partnership at Will. How long the connection lasts relies on business longevity. Thus, in this relationship, partners' desires don't matter. Partnership for a Fixed Term and perpetual duty were hard on them. 

Based on Partner Liability 

1. Regular Partnership 

Partners' accountability is unlimited in a general partnership. Partners may operate the firm and must act for the company. Only if partners die, go mad, bankrupt, or resign does the firm register. Teamwork is a cooperative activity. Partners operate and manage the company. Registration is optional, which might affect court proceedings if the partners don't register. Each partner is also accountable for any theft or unethical behavior by another. 

2. Limited Partnership 
A relationship is limited if one partner's obligation is limited but not the other. Permanent succession is crucial in this Partnership. This means the business may continue when a partner dies, goes bankrupt, or becomes mentally sick. Partners' personal liability is limited to their corporate investment. Partner Limited doesn't control the business and doesn't bind the firm or partners. Obviously, this connection must be recorded. It works for unequally profit-sharing partnerships. 
The business's investors merely have to repay their investments. They may keep their possessions if the business fails. Because it must be registered, this partnership has an advantage in court over conventional partnerships. The limited partners do not influence corporate management or organization. Unlimited responsibility proprietors receive all corporate benefits and are liable for all debts if the company fails.

3. Limited liability partnership  
A limited liability partnership has limited accountability if some or all members are not accountable for business commitments. Some owners are more accountable. This protects each partner against the other's faults or thievery. Starting a Limited Liability Partnership requires no minimum money or number of participants. A Limited Liability Partnership is costlier to register than other partnerships.

This means that members have some protection if the business runs into trouble.

Finances and management 
Partners jointly make all the decisions on how to manage your business. 
You get money for the business out of your assets or by borrowing money from banks or other parties.

 
Keeping records and accounts 
Keeping track of your business's cash and costs is important. 

 

Direct Indirect Taxes and Labor compliances if applicable

 

Your profits are treated as income

You have to pay Self-Assessment and file an Income tax return every year.

You have to register for GST in case your turnover excessed the limit Services business 20.00lakc and Trading or Manufacturing 40.00lacs.

You have to enrol your establishment for (EPF) Employee provident fund and (ESIC) Employee state Insurance Corporation in case you’re Human Resources reaches 20 and 10 respectively.

Taking responsibility 
Partnership business's expenses are your responsibility. Your home or other valuables could be in danger if your business goes bad.