Instead, creditors must sue the owner. The sole proprietor, in his own name, must sue those who harm the business. A sole proprietor may hire employees for the business, but they are employees of the sole proprietor. A sole proprietorship is highly transferable. Transferability also refers to the impact such a transfer will have on an existing business venture.
Transferability varies greatly among business organizations.
The sole proprietor is, essentially, the business. If a proprietor sells his business the proprietorship ends for that person, while a new one is formed by the buyer. The business' duration depends heavily on the form of business organization selected. The ability to raise capital for a business is limited by the nature of the business organization. The immediate and long-term financial needs of a business are very important factors in selecting a business organization.