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Katherine Whitehorn

Investment Dictionary


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Sole Proprietorship

 

A sole proprietorship is form of business that is owned by one individual. The main advantage of the sole proprietorship is the simplicity of starting business in this form. No weighty investments are needed. The taxes for government, of course, must be paid, but in most countries taxation for sole proprietorship is friendlier than for corporations

 

However, disadvantages also exist, and the main of them is that liability is not limited. It means that for all the business action the owner takes all the responsibility. It is a big risk when businessman can lose not only his investments in to business but everything he owns as a person, if something would go wrong.

 

 






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