A sole proprietor business is cheaper and easier to set up. You do not need to appoint directors and you do not need to maintain audited accounts. All you have to do is to think of a name, go to ACRA online and register your business. However with a sole prop setup, if your company makes losses, your personal assets will be exposed, i.e. your creditors can claim against your personal assets if your company assets are not sufficient. In addition, if you are an employee with a salary in the higher tier, your tax liabilities will be even higher if you add your rental income.
Check out the next post for the pros and cons of setting up a private limited company.
