The business's vulnerability to lawsuits. Tax implications of the different ownership structures. Whether or not you need to re-invest earnings into the business. Your need for access to cash out of the business for yourself. The vast majority of small business start out as sole proprietorships.
Sole proprietors own all the assets of the business and the profits generated by it.
They also assume complete responsibility for any of its liabilities or debts. In the eyes of the law and the public, you are one in the same with the business. Advantages of a Sole Proprietorship Easiest and least expensive form of ownership to organize. Sole proprietors are in complete control, and within the parameters of the law, may make decisions as they see fit. Sole proprietors receive all income generated by the business to keep or reinvest.