A sole proprietorship is owned and managed by one individual, the sole proprietor. The owner is personally liable for all debts and other liabilities as there is no separation between the entity and the individual.
The following are some characteristics of sole proprietorships:
A sole proprietorship is the simplest business entity to start and maintain. Furthermore, a sole proprietorship avoids the double taxation on profits that some other business structures may face. However, it is limited to one owner who is personally responsible for all liabilities.
The business organization laws vary depending on the state of incorporation. An attorney can help you determine what type of business structure is best for your organization. Timelines and deadlines for creating a business organization are generally strict in many states. A lawyer can also assist you with following all the detailed procedural rules, contacting all the necessary state and federal officials, and adhering to the deadlines for organizing a business organization.
Last Modified: 01-16-2014 12:54 PM PSTLaw Library Disclaimer
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