1. Sole Proprietorship
A sole proprietorship is when there is a single founder who owns and runs the
business. This is the simplest form of business entity because the business is not
separate from the owner.
You can give your business a trading name, and only you have the authority to
make decisions about your business.
Advantages of a sole proprietorship
Disadvantages of a sole
proprietorship
● It’s easier to set up than any of
the other business entities.
● The owner maintains 100%
● You, as the owner, assume all
the risk for the business. Your
assets will be seized to pay for
control and ownership of the business debt, and you are
business. personally liable for any
● The owner is entitled to all of
the profits.
obligations.
● If you wish to include another
owner in your business, you’ll
have to dissolve the sole
proprietorship and form a new
business entity.