Not every new business needs a company. A sole proprietorship or partnership is a simple, cost-effective way to test an idea, freelance or earn side income.
Advantages
- Lower compliance costs and simple administration
- Well suited to testing business ideas and side income activities
- Profits are taxed at the owner’s personal income tax rates
Considerations
- No separate legal entity, so the owner is personally liable for business debts
- Limited scalability; growing businesses may later convert to a private limited company
Why Proper Accounting Still Matters
IRAS requires proper records to support income and expense claims. Good accounts also help you track performance, claim all allowable expenses and convert smoothly to a company when the business grows.
How We Can Help
We prepare business accounts, compute tax on business income, support Form P filing and handle IRAS queries. Contact us for affordable accounting and tax support.