Advantages And Disadvantages Of Solee Ownership

| A sole proprietorship is easy to create; there is minimal creation cost and time.The single owner has autonomy in decision making; sole owner makes all decisions related to the business and has complete ownership of business’s finances.

The organizational forms a company might have as it evolves from a start-up to a major corporation are proprietorship, partnership, or corporation.

SOLE PROPRIETORSHIP: Sole proprietorships are the most common form of business in the United States. You and your business are one in the same. While being your own boss as its advantages, like working your own hours and collecting all profits made by the business, there are some disadvantages. For starters is coming up with starting working capital. Most Sole Proprietors have to seek funds from other sources.

Sole proprietorships are the most common type of business in the U.S. They are most commonly chosen because they are the easiest type of business to set up and give the sole owner of the company complete control of the company. There are many benefits to a sole proprietorship in regards to control, profit retention, and convenience.

Sole Proprietorship Sole proprietorship is the most common form of business in the United States. It is a relatively simple way for an individual to start a business since legal costs and business requirements are minimal, and the owner has complete control over the business. Though a sole proprietor is not responsible for any corporate tax payments, the owner is responsible for taxes incurred on the income generated from the business as part of his or her personal income tax payments, and personally shoulders any other risks or obligations. A sole proprietor may also choose to file their business under a fictitious business name or a DBA (doing business as), allowing him or her to operate and market the business under a more typical

SOLE PROPRIETORSHIP: Has only one owner. Easy to start up. Some of the advantages are: owners may do whatever they want to with the business and if they want to go on vacation they can. One of the disadvantages they cannot bring in another person to help run the business. This business form is particularly common.

Sole Proprietorship: A type of business that is owned by and run by one person with no legal difference between the business and the owner. It is easy to form with no cost or time to initiate. It gives the owner the ability to self-govern the business. There are drawbacks; only one owner can be established not allowing a partner. Also, unlimited liability puts the owner’s personal assets in jeopardy with the creditors.

a general partnership. It should be noted, however, that the specific steps and requirements to start an

After the creation of a business plan, the next step to operating a business is the selection of an appropriate business structure. Different legal forms of business ownerships affect different managerial and financial factors from the business names to the tax obligations (Gregory, n.d.). The most common forms are sole proprietorship, partnership, cooperatives, and corporations. There are different types of corporations in the business world, but the two most general corporation types are S Corporation and Limited Liability Company (LLC) (Ferrell et al., 2013). The sole proprietorship is the easiest and most basic form of business ownership. It is owned and run by one individual, which is the proprietor. The individual is entitled to all profits and is responsible for all the business’s

Sole trader-it’s a business that is owned by only one person and it can have one or more employees. This type of business organization often succeeds because the owner has total control of businees, the owner keeps all profit and it’s cheap to start-up,but also it can be difficult to raise financial,it may be difficult to specialise or enjoy economies of scale and can also have problems with continuity if sole trader retires or dies.

The advantages to the sole proprietorship are single control over the business and its decisions, easy to start up, less regulations and paperwork burden that the other types of business. The disadvantages are unlimited liability for their company debts and actions. The law does not recognize any distinctions between the owner’s business assets and personal assets. Banks are very skeptical about lending to these types business because there is only one person to hold liable for repaying the debt.

Is the most common business type, where the business is operated and owned by a single individual. In this type of business, the sole proprietor provides capital, does not share profit or loss and runs the business alone. As such, the business and the owner are indistinguishable for tax and legal purposes (Dlabay, 2011). To differentiate this business from other business types, a sole proprietorship is discussed under the following characteristics.

There are so many advantages of being a sole proprietorship for PODS. They are managed by their owners and can make decisions quickly. They do not have to discuss publicly their operating plans, minimizing the possibility of competitors obtaining their trade secrets ("Advantages and Disadvantages of Sole Proprietorships",2007). All profits will belong to the owner. Essentially this benefits the companies financial standing. Sole Proprietorships have the freedom from the government regulations. Their profit is personal income and taxed at an individual rate. Sole proprietorships can dissolve the business easily if they are suffering financially. Some of the disadvantages are they have unlimited liability in meeting debts of the business. Sole proprietorships have limited sources of funds. The owners personal financial condition determines he owners credit standing ("Advantages and Disadvantages of Sole Proprietorships",2007). This means that the owners may have to pay a higher interest rate on funds if they borrow from the banks for business purposed. They would also have to pledge a car, house, or other real estate to be qualified for the business loan. A sole proprietor must be able to perform many functions such as management, finance, accounting, bookkeeping, and personal management. Another huge part of responsibility would be if the owner is in poor health or has serious health conditions may not have competent help to help the business survive if a business partner could not hold their end of the deal and help support the business ("Advantages and Disadvantages of Sole Proprietorships",2007). PODS started off as a LLC. This means that they have more protection to owners so that their personal belongings will not be seized to pay the company debts (Ferrell, O.C., Hirt, & Ferrell, L., 2014). It is usually difficult for small sole proprietorships to match the wages and benefits offered by the larger corporations because the profits may not be as high ("10 Advantages and Disadvantages of Sole Proprietorship", n.d.). Taxation can be an advantage or disadvantage in some instances depending on the proprietors income ("10 Advantages and Disadvantages of Sole Proprietorship", n.d.). Under current rate sole

There are many advantages and disadvantages when owning your own business. When you own you own business, it’s known as a sole proprietorship. But with any type of business, there will always be advantages and disadvantages.

When starting a business an individual needs to know what type of business structure they will have. After looking at all the types of structures for a business, I decided to go with a sole proprietorship business. I choose the sole proprietorship structure because it is the simplest structure out of all of the structures. The owner has complete control to run the business as they would