Sole proprietorship vs private limited

[little chicken]

Dear all

I would like to know the difference between the sole proprietorship and private limited. I can create both but I have no idea about pros and cons. Many thanks for your answer!

[sundaymorningstaple]

little chicken,

If you look at the list below this post (headed Similar Topics) and have a read of some of the threads, especially those by Strong Eagle, most of your questions will be answered or at any of those threads have a look at the bottom of the page ('Similar Topics') and there will be other different ones. There is a wealth of knowledge in the archives.

[sundaymorningstaple]

Or just copy & paste 'Sole Proprietorship vrs Private Limited' into the search field at the top right of the thread messages and start reading.

[little chicken]

Thanks - I read some of the discussions, but I am sorry I still cannot form a definite opinion.
I want to create a company to provide coaching,training and consulting services in Singapore. These are not regulated professions. How risky it is to create a sole proprietorship? It is cheaper and less painful to manage so I was wondering whether it was a wise or a silly choice.

Many thanks for your help

[Strong Eagle]

Thanks - I read some of the discussions, but I am sorry I still cannot form a definite opinion.
I want to create a company to provide coaching,training and consulting services in Singapore. These are not regulated professions. How risky it is to create a sole proprietorship? It is cheaper and less painful to manage so I was wondering whether it was a wise or a silly choice.

Many thanks for your help

A sole proprietorship is a business entity that is not separate from you. You report your business income and expenses (and profit/loss) on your personal tax return. Legally, your business assets and your personal assets are not separate; therefore, if you were to be sued and lose and have a money judgment awarded against you, all of your personal assets could be used to satisfy that judgment. For example, let's say that your business got sued and you also personally owned a condo unit. The condo unit could be taken to satisfy the judgment.

A private limited is a separate legal entity and unless you engage in certain types of activities, your losses and liabilities are limited to the assets of the company. It costs more to setup a pte ltd and it is more complicated to file on a yearly basis but you have that corporate shield.

If you want to get a sense of what most shopkeepers do for their businesses, just walk down the street and look at the business signs. Most of the will have "pte ltd" in the name because it is generally safer financially, especially if you have a lot of personal assets.

[kansas]

You need to assess the potential liability of your service business.

For both PteLtd and sole-proprietorship, the downsides are different. For PteLtd, in the worst case, you will lose your capital. For sole-proprietorship, you stand to lose everything you own as a person in the worst case i.e. bankruptcy.

Thanks - I read some of the discussions, but I am sorry I still cannot form a definite opinion.
I want to create a company to provide coaching,training and consulting services in Singapore. These are not regulated professions. How risky it is to create a sole proprietorship? It is cheaper and less painful to manage so I was wondering whether it was a wise or a silly choice.

Many thanks for your help

[sundaymorningstaple]

Dorothy, you need to go back to Kansas. Did you bother to read Strong Eagle's posts or do you just like looking like a parrot?

[kansas]

my bad, thought a little shorter re-phrasing was helpful.

Dorothy, you need to go back to Kansas. Did you bother to read Strong Eagle's posts or do you just like looking like a parrot?

[sundaymorningstaple]

Strong Eagle's details are very much admired by all in his 15 years of dispensing his first hand knowledge of having been a business owner here and regionally as well.