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My thinking is that a business that personally belongs to me will be properly run and monitored but Iking Ferry is making me believe that a limited company is better. If so, then what are the benefits and the advantages over a business personally owned by me and my family?
A sole ownership and limited liability company are two different things or businesses. The first as own by you and manage by you and your family is easy. In effect, it is easy here to infer that you are the Managing Director. What roles your subordinate family holds is not known. It can also be infeRead more
A sole ownership and limited liability company are two different things or businesses.
The first as own by you and manage by you and your family is easy.
In effect, it is easy here to infer that you are the Managing Director.
What roles your subordinate family holds is not known.
It can also be inferred you provide all the finances or it is jointly financed by you and your family, you contributing the majority.
If you have experience in businesses, this sole proprietorship will success.
You and your family reap all the benefits.
The advantage is that no one outside your circle knows how much the sole proprietorship earns monthly or annually.
The other advantage is you do not fill tax form.
But all these are now (from 2026) past history.
The Federal Government of Nigeria, is now wading into every business matter that is profit bent.
So tax forms has to be filled.
You have to access how much you will pay. Incentives were made available, and have huge advantages. For example, tax holiday. A sole proprietor can not benefit from a tax holiday, but a big limited liability company can, especially if it is nearly formed.
If you do not fill tax return form, Government has to access you to your regret. Whatever government says you pay, is your regret.
Getting big loans say N10,000,000.00 from Commercial Banks is not easy for a one man business. If you die, will your family members paid back the loan? Every commercial banks have this in mind. And since, ownership is not separate, banks do not give sole proprietorship loans.
But big limited liability companies will take advantage of a loan of N100,000,000.00.
This is because the company is separate from ownership.
If the Managing Director dies, the company still moves on. Because the Managing Director is not the owner of the company. Big companies are publicly owned. So they stay put in every scenario, except a Court ordered it be wind down.
This is why Iking Ferry, is saying that nowadays, limited liability companies are in a much advantageous position than the one man business.
If you think otherwise, look around you. Where are the sole proprietorship before you wade into the business? Where is they businesses heading? They are probably extinct.
See lessA sole ownership and limited liability company are two different things or businesses. The first as own by you and manage by you and your family is easy. In effect, it is easy here to infer that you are the Managing Director. What roles your subordinate family holds is not known. It can also be infeRead more
A sole ownership and limited liability company are two different things or businesses.
The first as own by you and manage by you and your family is easy.
In effect, it is easy here to infer that you are the Managing Director.
What roles your subordinate family holds is not known.
It can also be inferred you provide all the finances or it is jointly financed by you and your family, you contributing the majority.
If you have experience in businesses, this sole proprietorship will success.
You and your family reap all the benefits.
The advantage is that no one outside your circle knows how much the sole proprietorship earns monthly or annually.
The other advantage is you do not fill tax form.
But all these are now (from 2026) past history.
The Federal Government of Nigeria, is now wading into every business matter that is profit bent.
So tax forms has to be filled.
You have to access how much you will pay. Incentives were made available, and have huge advantages. For example, tax holiday. A sole proprietor can not benefit from a tax holiday, but a big limited liability company can, especially if it is nearly formed.
If you do not fill tax return form, Government has to access you to your regret. Whatever government says you pay, is your regret.
Getting big loans say N10,000,000.00 from Commercial Banks is not easy for a one man business. If you die, will your family members paid back the loan? Every commercial banks have this in mind. And since, ownership is not separate, banks do not give sole proprietorship loans.
But big limited liability companies will take advantage of a loan of N100,000,000.00.
This is because the company is separate from ownership.
If the Managing Director dies, the company still moves on. Because the Managing Director is not the owner of the company. Big companies are publicly owned. So they stay put in every scenario, except a Court ordered it be wind down.
This is why Iking Ferry, is saying that nowadays, limited liability companies are in a much advantageous position than the one man business.
If you think otherwise, look around you. Where are the sole proprietorship before you wade into the business? Where is they businesses heading? They are probably extinct.
See less