SOLE PROPRIETORSHIPS
SOLE PROPRIETORSHIP Business owned / managed by 1 person 75% of U.S. Business Account for 6% of U.S. sales
ADVANTAGES 1) Ease of start up Meet Minimum requirements: Small amount of paperwork Small Legal Expense Meet Minimum requirements: 3 Requirements * Authorization Business License Special Licenses for certain professionals
ADVANTAGES * Site Permit * Name Certificate of Occupancy * Name http://sbinformation.about.com/od/adver tisingpr/a/businessnames.htm All takes only a few days Toughest Part?
ADVANTAGES 2) Few Regulations Only industry specific regulations Example: Food, Medical Zoning Laws Require little legal paperwork = inexpensive
ADVANTAGES 3) Sole Receiver of Profit 4) Full Control 5) Easy to Discontinue
DISADVANTAGES 1) Unlimited Personal Liability Liability = legally bound obligation to pay debts Business Debt can ruin personal finances
DISADVANTAGES 2) Limited Access to Resources Banks unwilling to offer financing in early stages Limit of skills Sales, Bookkeeping, Accounting, etc.
DISADVANTAGES 3) Lack of Permanence Maintaining Business Closing shop, retirement, keeping employees