Sole Proprietorship

One owner, responsible for everything

Definition

In this there is one owner, they can make this business very quick, and very cheap.

Summary

Name of the company is the owners name, if wanting to name it something else there is some paper work that has to be filed. In order to get a license to run the business just have to file some work and fill out tax papers. if hiring employees need to apply for the EIN so they can get taxed

Advantages and Disadvantages

Advantages

  • Can be established quickly
  • Require little rules from governments
  • Does not need to pay unemployment taxes on themselves
  • Owners may mix own assets and business
  • All money made goes to owner

Disadvantages

  • Owners have full responsibility of liabilities
  • Difficulty getting bank loans
  • Hard to get employees with the skill you want.