The sole proprietorship form usually is advantageous to a new business because of ease in organization. The business owner is responsible for all financing, management decisions, and liabilities of the business. Least government regulation. Ease of formation and simple structure. No double taxation.
Owner receives all profits.
Lack of continuity as a result of disability or death of owner. Owner may have limited managerial expertise. All profit is taxed as personal income. Most home-based businesses use the sole proprietorship form. It is simple, inexpensive, and requires less complex record keeping methods than the other forms of ownership.