If you decide to start a business on your own, you may want to consider the benefits of sole proprietorship. This isn’t your only option, as you could also create an LLC or corporation, but it’s one that you should definitely consider.
The primary benefit of sole proprietorship is the ability to get up and running in a short period of time. Unlike an LLC, for example, you don’t have to create a legal agreement or file much paperwork. Along with this, you have the opportunity to run the business however you best see fit.
Here are some of the other benefits of sole proprietorship:
— Complete control over every aspect of the company
— You are able to receive all profits from the business
— Easier to organize and startup
Along with the benefits of sole proprietorship, there are some drawbacks that you should also consider. For example:
— You are personally liable for all business debts
— It can be more difficult to secure a bank loan
— Creditors can come after your personal assets
With a list of pros and cons guiding you, it should be easier to decide if sole proprietorship is the right structure for your business at the present time.
If you find that sole proprietorship does not offer everything you are looking for, turn your attention to another structure. For instance, an LLC could be the right choice.
In the end, what matters most is that you are comfortable with the business structure you have in place and that it allows you to grow your company with confidence.
Source: Grasshopper, “Nuts and Bolts: Nitty-Gritty Details, Incorporating, and Taxes,” accessed June 02, 2017