1. Sole Proprietorships
A business that is owned (and usually operated) by one person
The simplest form of business ownership and the easiest to start
Many large businesses began as a small struggling sole proprietorships
The most widespread form of business ownership
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2. Relative Percentages of Sole Proprietorships, Partnerships, and Corporations in the U.S.
Sole proprietorships are most common in retailing, agriculture, and the service industries
Source: U.S. Bureau of the Census, Statistical Abstract of the United States, Washington, D.C., 2008, p. 487 (
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3. Advantages and Disadvantages of Sole Proprietorships
Ease of start-up and closure
Pride of ownership
Retention of all profits
Flexibility of being your own boss
No special taxes
DISADVANTAGES
Unlimited liability
A legal concept that holds a business owner personally responsible for all the debts of the business
Lack of continuity
Lack of money
Limited management skills
Difficulty in hiring employees
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