Advantages of Sole Proprietorship and Disadvantages of Sole Proprietorship

What are the advantages and disadvantages of setting up a new business as a sole proprietorship?

Advantages

Simple to set up.
Simple to operate.
Paying taxes is a minimum of hassle.
Less expensive to set up and operate than other business structures.
Easy to get out of if the business does not work out.

Disadvantages

Unlimited liability, which puts owner’s assets at risk.
Generally tougher to borrow money with a sole proprietorship than other business structures.

General Rule

Speak with an attorney and accountant before starting a business.

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