What are some of the advantages of a sole proprietorships, and how do these differ from those of corporations?

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 an LLC. To figure out what business form is best for your company then check out LawTrades. Our legal platform offers free consultations w/ startup attorneys.