The Pros and Cons of Sole Proprietorship

Advantages of Sole Proprietorship

The life of a sole proprietorship is limited. A sole proprietor can generally raise large sums of capital quite easily. Transferring ownership of a sole proprietorship is easier than transferring ownership of a corporation.

Disadvantages of Sole Proprietorship

A sole proprietorship is taxed the same as a C corporation. A sole proprietorship is the most regulated form of organization.

Answer: The life of a sole proprietorship is limited.

Explanation:

A sole proprietorship simply means a one man business where the owner manages, controls the business and enjoys the profits alone.

A sole proprietorship has a limited liability as its life is limited. Normally, the death of the owner would result in the end of the business and the owner bears the loss alone.

A sole proprietorship is not taxed the same as a C corporation and it isn't the most regulated form of organization.

Can a sole proprietor raise large sums of capital easily? Yes, a sole proprietor can generally raise large sums of capital quite easily.
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