You gotta have Sole

(Proprietorship)

Overview: What is a Sole Proprietorship?

A sole proprietorship is the most simple form under which a business can be run. It does not create a legal entity such as a corporation or monopoly does. All it means is that a single person is responsible for the debts of the business. It can operate under a fictitious name that is not that of the owner, similar to a pen name. It does not create a separate legal entity.

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Advantages:

  • A sole proprietor has control and decision-making power over the business.
  • Sale or transfer can take place at the discretion of the sole proprietor.
  • No corporate tax payments.
  • Minimal legal costs to forming a sole proprietorship.
  • Few formal business requirements.
www.nytimes.com

Disadvantages:

  • The sole proprietor of the business can be held personally responsible for the debts and obligations of the business.
  • All responsibilities and business decisions fall on the shoulders of the sole proprietor.
  • Investors will not usually invest in sole proprietorship.
www.nytimes.com

The mechanics of a sole proprietorship.

A sole proprietorship is run by one individual starting a business. They are liable for anything going wrong and they run all of the business transactions. They have complete control of the business. The owner controls all facets.

www.sba.gov

www.ftb.ca.gov

Examples of Sole Proprietorships

An example of a sole proprietorship would be a landscaping company or a car repair company. Because sole proprietorships often require a change in ownership policy to grow, there are no examples of well known proprietorships. Walmart was once one, it started out as a single store but is now a nationwide corporation. Sole proprietorships are often sink or swim because it relies on the owner's ability to make a profit or to not do so. When one fails, it is usually because it could not meet market equilibrium or could not pay back their start up loans.

www.smallbusiness.chron.com/10-examples-sole-proprietors