The following is a listing of some of the pros and cons of each form of business. Keep in mind that there are many more important issues and factors of each entity that must be taken into account when choosing the type of entity. Sole Proprietorships Pros Cons 1. Business and its owner are a single legal entity. Complete personal liability.
Business loses value with the illness or death of owner.
Separate legal entity provided required formalities are observed. Limited liability protection. Unlimited number and type of shareholders. Freely transferable interests. Favorable tax treatments in providing benefits.