Partnership vs proprietorship

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2012 Whether all the partners of partnership firm after dissolution can be partners in the sole proprietorship firm and profits of that proprietorship firm can be distributed to all the partners for tax purposes in their profit sharing ratio?

Thanks in Advance

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 October 2012 A sole proprietorship means a business which is owned and run by a single person.

There can only be one owner.

There CANNOT be partners in a sole proprietorship concern.

If two or more persons come together then it will be a partnership firm.

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