Advantages of a Sole Proprietorship
- A sole proprietor has complete 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. \
Disadvantages of a Sole Proprietorship
- The sole proprietor of the business can be held personally liable for the debts and obligations of the business. Additionally, this risk extends to any liabilities incurred as a result of acts committed by employees of the company.
- All responsibilities and business decisions fall on the shoulders of the sole proprietor.
- Investors won't usually invest in sole proprietorships.