1. SOLE PROPRIETORSHIPS

2. SOLE PROPRIETORSHIP Business owned / managed by 1 person
75% of U.S. Business
Account for 6% of U.S. sales

3. 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

4. ADVANTAGES * Site Permit * Name
Certificate of Occupancy
* Name
tisingpr/a/businessnames.htm
All takes only a few days
Toughest Part?

5. ADVANTAGES 2) Few Regulations Only industry specific regulations
Example: Food, Medical
Zoning Laws
Require little legal paperwork = inexpensive

6. ADVANTAGES 3) Sole Receiver of Profit 4) Full Control
5) Easy to Discontinue

7. DISADVANTAGES 1) Unlimited Personal Liability
Liability = legally bound obligation to pay debts
Business Debt can ruin personal finances

8. DISADVANTAGES 2) Limited Access to Resources
Banks unwilling to offer financing in early stages
Limit of skills
Sales, Bookkeeping, Accounting, etc.

9. DISADVANTAGES 3) Lack of Permanence Maintaining Business
Closing shop, retirement, keeping employees