Sole proprietorships are easy toestablish-Sole proprietorships are inexpensive and easy to form. As long as you’re the owner and in charge of operations, there’s no need to formally register your business ornotify federal or state offices.
You can protect the name of your sole proprietorship-As a sole proprietor, the legal name ofyour business is your personal name.
There’s no limit to the number of people you can hire -There is no limit to the number of people you can employ as a sole proprietor, and this allows you to grow your reach and your team without taking the leap to formally incorporating your business.
Disadvantagesofasoleproprietorship
Personal liability -The same way sole proprietorships afford you the freedom to operate as you see fit—adhering only to licensing mandates without registration or shareholders—this freedom comes with responsibility.
Difficulty raising money-The personal liability of a sole proprietor represents risk and, for this reason, banks can be hesitant to lend money or issue credit under this business structure.
A growing business needs the right business structure-With so much to consider in building a business—including writing a business plan, raising capital, staying inspired, and knowing when to invest full-time in your startup dream—the ease of sole proprietorship can feel like a relief.
