Advantages and disadvantages of a sole proprietorship registration?
What are the Advantages of Sole Proprietorships?
Most sole proprietorships tend to be small and localized. The advantagescommonly associated with carrying on a sole proprietorship are the following:
· ease in which to start and dissolve the business;and
· modest start up expenses.
What are the Drawbacks of Sole Proprietorships?
There is, however, a significant disadvantage which may lead you todecide against choosing this business form, namely, unlimited liability. Theowner is personally responsible for all of the debts and obligations incurredby the business. The owner is thus liable to the full extent of his/herpersonal assets for all of the liabilities and losses which are incurred by thebusiness. Also, the owner is liable for the actions of employees in the courseof their employment.
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