Sole Proprietorship

The sole proprietorship is the most common form of business organization in the United States. The sole proprietorship is the default form of business that automatically comes into existence, under law, when an individual goes into business without any partner and does not otherwise register another form of business organization (e.g., a corporation or limited liability company [LLC]). The sole proprietorship is owned by one person, called the “sole proprietor,” who individually owns all business assets and liabilities. Although generally sole proprietorships remain small in size, there are no limits to the number of possible employees who may be hired. This entry sets forth the advantages, disadvantages, and implications of the sole proprietorship form of business organization.

Advantages of the Sole Proprietorship

There are both advantages and ...

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