Welcome to the SmallBusiness.com WIKI
The free sourcebook of small business knowledge from SmallBusiness.com
Currently with 29,735 entries and growing.

WIKI Welcome Page
Local | Glossaries | How-to's | Guides | Start-up | Links | Technology | All Hubs
About · Help Hub · Register to Edit · Editing Help
Twitter: @smallbusiness | Facebook | Pinterest | Google+

SmallBusiness-com-logo.jpeg

In addition to the information found on the SmallBusiness.com/WIKI,
you may find more information and help on a topic
by clicking over to SmallBusiness.com and searching there.


Note | Editorial privileges have been turned off temporarily.
You can still use the Wiki but cannot edit existing posts or add new posts.
You can e-mail us at info@smallbusiness.com.


Sole proprietorship

SmallBusiness.com: The free small business resource
Jump to: navigation, search
A sole proprietorship is a business which legally has no separate existence from its owner. Hence, the limitations of liability that a corporation provides do not exist for a sole proprietor. Sole proprietorships can operate in the name of the individual or can have a company name. If the business is operated using a name other than that of the owner, typically, it must register the trade name, or "doing business as" (DBA) name with the appropriate agency within its jurisdiction -- most likely a city or county.

Sole proprietorship advantages

  • Few regulatory requirements compared to corporation
  • No corporate tax payments as income is treated as individual income tax
  • Small formation costs (few legal fees)

Sole proprietorship disadvantage

  • Personal liability for the debts and obligations of the business.
  • Typically, outside investors will not invest in a sole proprietorship

See also

External links

Wiki25.jpg
This entry includes content from the following Wikipedia article: Sole Proprietorship.