The concept of the individual entrepreneur, also known as autonomic o individual company is a natural person who is engaged in an economic or professional activity on his own account. By the definition of individual entrepreneur we understand that there is no fragmentation at the legal or juridical level of what the owner and the business are.
In addition, to reaffirm it, one of the characteristics of the individual entrepreneur is that the entrepreneur is solely responsible for the debts of the business and who will be in charge of managing the entire company, both strictly related to economic activity and records. accounting related to situation balance.
Advantages and disadvantages of the individual entrepreneur
Because it is a At a sole proprietorship, the advantages and disadvantages of the individual entrepreneur are determined by their commercial nature and depend directly on their responsibility and the nature of this type of company. These are some of the particular advantages and disadvantages of this type of company:
- It is an easy-to-build company since the owner has full power to make decisions
- Being a single employer, all the benefits are for him
- The social responsibility of this type of company is unlimited, therefore the individual entrepreneur will be the only one who will have to face the debts and always respond for the entity
- All costs and investment will always be assumed by the entrepreneur and not by third parties
- It can end up being a Limited Liability Company, since as the company grows taxes and also the possibility of risk increases much more. Therefore, at some point creating a corporation is the most feasible solution.