Here is a quick breakdown (Carl does a great job providing a long-winded version):
Advantages of sole proprietorships– less paperwork (taxes, administrative maintenance), fewer annual obligations, (potentially) cheaper
Disadvantages of sole proprietorships– no personal liability protection (a supplier / customer can take everything from your personal bank account), can end up being much more expensive if you’re ever sued, not as respected as a corporation in society’s view
In only a few occasions does it make sense for a company to remain a sole proprietorship. Instead, consider. To figure out what business form is best for your company then check out . Our legal platform offers free consultations w/ startup attorneys.