A Sole Proprietorship is a business that is owned and managed by one owner. They may use a trading name or business name other than their legal name for the company. There is generally a requirement to file a fictions business as a 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
AcqLinks and References:
- [1] Nickels and McHugh, “Understanding Business” McGraw-Hill Irwin 2010
- Website: Wikipedia – Sole Proprietorship