Business Organization : A Sole Proprietorship

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Christen Jones Mr. Kuklo BUS 110-L6B October 9, 2016 Business Organization A Sole Proprietorship is a single individual owner and operator. This includes business owners and independent contractors. Most of the time, a Sole Proprietorship includes services, such as your local coffee shop, rather than the manufacturing of goods which costs more money to start. Sole Proprietorships are usually small businesses and small businesses make up three-fourths of U.S. businesses and a vast majority of the economy. Sole Proprietorships are fairly easy and cheap to start. Quick and easy decisions can be made because the owner and operator is the single individual business owner. Finances and trade secrets can be kept secret, all profits belong to the owner, and they can have complete and total control of the decisions being made. A site will need to be established, this could even be a home office depending on the business. There is less government regulation and tax exempt accounts that can be used for Sole Proprietorships. Some cons to Sole Proprietorships include no liability or back-up money. This means that your personal belongings such as your house and your car can be taken if money is due. There are limited sources of money as well. The single individual responsible must also be healthy and working and single handedly skilled in many areas. In a Partnership, there are two or more co-owners. Partnerships are the least popular business organization in the United States. There are
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