A Sole Proprietorship is a business that is owned and managed by one owner.  They may use a trade name or business name other than their legal name for the company. There is generally a requirement to file a fictions business as statement with the local authorities if the company isn’t named after the sole proprietor.

The advantages of a sole proprietorship include: [1]

  • Being their own boss and manager
  • Ease of starting and ending the business
  • Pride of Ownership
  • Leaving a legacy
  • Retention of company profits
  • No Special taxes

The disadvantages of a sole proprietorship include: [1]

  • Unlimited liability
  • Limited financial resources
  • Management difficulties
  • Overwhelming time commitment
  • Few fringe benefits
  • Limited growth
  • Limited life span

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