"When choosing which form of business to start, many potential business owners choose sole proprietorship. Sole proprietorships have numerous benefits; however, it is essential that you understand the major drawback. Let's examine the advantage and disadvantage of sole proprietorships.The ability to make all decisions regarding the operation of the business is the major advantage of sole
. proprietorships. This includes the sale or transfer of the business, the financial decisions, the marketing decisions, and the business expansion decisions. With this advantage, you alone have the right to sign checks. In a nutshell, you do not have to answer to partners, board of directors, or investors.However, keep in mind the major disadvantage of operating sole proprietorships is your legal and financial responsibility for the business. With that said, you are leaving your personal finances and family's well being open for potential lawsuits. In the event someone is injured or harmed due to your products or services, they can sue you as well as your business. This includes such personal assets as your home, car, and personal savings. Unless this disadvantage can be controlled or prevented through business insurance, proper financial management, and quality assurance, you may need to consider another option."
