Explore BrainMass

Disadvantages of Sole Proprietorship

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Please explain some of the important disadvantages of sole proprietorship.

© BrainMass Inc. brainmass.com March 22, 2019, 1:39 am ad1c9bdddf

Solution Preview

Before beginning a business, it is essential to determine not only the type of business you plan to open, but also the structure of that business. Various business types exists, but according to All Business, a popular online business journal, sole proprietorships are the most common form of businesses. Many people often question why sole proprietorships are so common... The reasons/ advantages include: sole decision making power, inexpensive legal formation costs, few "formal business requirements," no corporation taxes, etc. (All Business, 2013).

Although all of these business advantages look quite ...

Solution Summary

The solution below discusses the advantages and disadvantages of sole proprietorship businesses. This solution provides detail regarding why businesses should consider other business models of ownership other than sole proprietorship. This solution also provides website/ academic support regarding the topic of sole proprietorship.