Sole proprietorship

A 'sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's. It is a "sole" proprietorship in contrast with partnerships. Glos and Baker write that "A sole proprietorship is a business owned by one person who is entitled to all of its profits," Reed and Conover say "The single or the sole proprietorship is a business owned and controlled by one man even though he may have many other persons working for him. A sole proprietor may use a trade name or business name other than his or her legal name.

Advantages

They have the ability to raise capital either publicly or privately, to limit the personal liability of the officers and managers, and to limit risk to investors. Sole proprietorships also have the least government rules and regulations affecting it. Owners have complete control over all the aspects of his or her business and can take any managerial decisions that he/ she wants to take. LoopNet is the premier resource on the internet to find property for sale. We give you all the resources necessary to make the most informed decision on new property purchases while saving money. The LoopNet database is not just limited to business offices. You can search for any kind of commercial property on the market on LoopNet. You do not even have to leave your home or office to peruse one of the largest and most trusted databases of property for sale on the internet.

Disadvantages

Raising capital for a proprietorship is more difficult because an unrelated investor has less peace of mind concerning the use and security of his or her investment and the investment is more difficult to formalize; other types of business entities have more documentation. The enterprise may be crippled or terminated if the owner becomes ill. Since the business is the same legal entity as the proprietor, it ceases to exist upon the proprietor's death. Because the enterprise rests exclusively on one person, it often has difficulty raising long-term capital.