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the sole proprietor is an unincorporated business with one owner who pays
personal income tax on profits from the business with a little government
regulation they are the simplest business to set up or take apart making
them popular among individual self contractors are business owners many
sole proprietors do business out of their own names because creating a
separate business or trade name isn't necessary sewn proprietorship is also
known as proprietorship there is no separate legal entity created by a sole
proprietorship unlike corporations in limited partnerships
consequently the sole proprietor is not safe from liabilities incurred by any
entity
the debts of the sole proprietorship are also the debts of the owner
all profits flow directly to the owner of a sole proprietorship the benefit of
the sole proprietorship is the tax advantage
the disadvantage obv a sole proprietorship is obtaining capital
funding specifically through establish channels such as equity entertaining
bank loans or lines of credit
as a business grows it often transitions to a limited liability company or s
corporation