Harry operates a local handyman business. Harry also does some routine maintenance work for a few commercial accounts. Harry is very successful and has enough business to keep him and several employees busy 6 days a week. Occasionally, a client rents repair tools from Harry. Clients sometime take their time paying for Harry's services and, therefore, Harry is sometimes late paying his bills.
Harry's capital is about $45,000, most of which consists of a couple of trucks and an assortment of repair tools equipment. Harry's wife handles the books.
Should Harry continue to operate his business as a sole proprietorship? In answering this question, discuss the applicable rules and why they do or do not apply in this case.
Harry should analyze very critically whether he wants to place his personal assets and wealth at risk as sole proprietors are solely responsible and liable for any damages incurred from their business activities or those of their employees. Harry is ...
The expert examines local handyman businesses operations. The businesses as a sole proprietorship are continued.