What Are Some of the Advantages or Disadvantages of a Sole Proprietorship?
Advantages
The business owners maintain complete control of their business, and within the law, may make decisions as they see fit.
Forming and organizing a sole proprietorship is easy and inexpensive.
Sole proprietors obtain all the income generated by their businesses to re-invest or keep.
If desired, the business owners may easily dissolve the sole proprietorship.
Disadvantages
Unlike corporations, sole proprietorships have unlimited liability and are legally responsible for all debts made against the business.
With unlimited liability, business and personal assets may be at risk.
Sometimes sole proprietorships have a hard time attracting high-caliber or highly qualified employees, especially those who may motivated by an opportunity to own a part of the business.
Sole proprietorships can be at some disadvantage when attempting to raise funds and are often limited to using funds from consumer loans or personal savings.
