The main disadvantage of being a sole proprietor is that the owner is personally liable for the debts of the business. This makes him vulnerable to lawsuits from creditors and can lead to the loss of personal assets.
Another disadvantage is that a proprietor does not have the benefit of limited liability. This means that creditors can go after his personal assets to recover the debts of the business. A proprietor also has limited options for raising capital and transferring ownership of the business. Finally, he has less control over decision making than a partner in a partnership or an owner in an LLC