What are the benefits of the sole proprietorship structure? Who is it best suited for?
This structure is extremely simple and avoids many legal complications, although some requirements, such as licensing, may still exist. This structure is best suited for small enterprises as all of the benefits and liabilities of the business flow through to the individual. The liability of the individual is unlimited. The profits of the business flow through to the individual and are taxed in his or her hands, which limits the opportunities for tax planning.
