What are the pros and cons of a sole proprietorship?
As the simplest way to do business, a sole proprietorship is operating a business in his or her individual capacity rather than through a formal business entity. Sometimes, a person will run a business as a sole proprietorship in his or her own name. However, its a common practice to operate under a fictitious name (which is sometimes called a dba). Its important to understand, though, that a sole proprietorship doing business under a fictitious name is still just a sole proprietorship. The biggest benefit to operating as a sole proprietorship is its simplicity. Youre your own boss and dont have to worry about many of the rules and regulation that apply to corporations and other types of business entities. You dont have to worry about filing separate tax returns. In theory, you dont even need to keep separate books and records for your business. However, the simplicity of a sole proprietorship can also be a business owners worst enemy. Why? Because a sole proprietorship doesnt give any
