The sole proprietorship is a simple way to do business, although the sole proprietor is still subject to the formalities and requirements imposed by licensing requirements and state registration. The biggest disadvantage is that the sole proprietor personally suffers all business losses, and is personally responsible for all debts, claims, liabilities and other obligations of the business. Furthermore, because there is no legal distinction between the sole proprietor's personal property and business property, either may be seized to satisfy business obligations. See Organizing Your Small Business for more information. This website provides general information only.
Laws develop over time and differ from state to state.
This website does not provide legal advice about specific legal problems. Let The Law Firm of Evan H. Farr, P.C. advise you about your particular situation.