Sole Proprietorship

Running head: SOLE PROPRIETORSHIP Sole Proprietorship Frankeisha Bennett AIU ONLINE Abstract Sole Proprietorship is an individually owned business. I have choose to write about this type of business because I like being in charge. I will start off my paper by explaining how to start a sole proprietorship. I will then explain the advantages and disadvantages of running this type of business. In conclusion I hope that my reader will fully understand what it takes to start up a sole proprietorship business and all of the advantages and disadvantage of his type of business. Sole Proprietorship Sole Proprietorship is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business (Wikipedia). The owner is responsible for the business finically and legally. This type of business is the easiest business to operate because the start cost is usually low. The business is independently owned so that eliminates employees and payroll most of the time. Sole proprietorship is an independently owned business. The procedures for setting up a Sole proprietorship are less complicated than other businesses. This type of business is easy to set up and maintain. In order to setup this business, you will need time, space, equipment, a business name and license and finances to start. Once everything has been done, your business will be ready to start. Setting up a Sole proprietorship is easy when you follow all of the right procedures. There are many advantages in a Sole proprietorship. One of the major advantages in this type of business is the ease of tax regulations. Sole proprietors pay self employment taxes on the profits made, which makes accounting much easier. In other businesses like corporate, you will need to set up a separate tax form for the business alone. This advantage is one of the most important advantages when starting a sole proprietorship. Another advantage is