Here’s some information about the pros & cons about sole proprietorship.
The advantages of a sole proprietorship include:
- Owners can easily set up a sole proprietorship at the county clerk’s office and it is a relatively inexpensive option.
- Sole proprietorship’s do not have to participate in voting and meetings to operate.
- Sole proprietors do not pay unemployment tax on them, but has to do so for their employees.
- Owners can mix personal and business assets.
- There are no publication requirements
The disadvantages of a sole proprietorship include:
- Sole proprietorship does not protect the owner from losses or debts. The owner’s personal assets are at risk in the event of a lawsuit, such as banks accounts or retirement funds.
- Owners cannot sell shares of stock to raise capital.
- The duration of a sole proprietor usually ends with their death and therefore doesn’t retain value.
Sole proprietorship’s are formed on a county level where Corps & LLCs are filed on a state level. It is best to speak with your accountant or attorney to decide whats best for your individual situation.