SOLE PROPRIETORSHIP

A sole proprietorship is the simplest way to carry on business. The individual is the sole owner of the business. The sole proprietorship business and the owner are one and the same. All benefits from the business accrue to the sole proprietor and all obligations of the business are the responsibility of the sole proprietor.

The main disadvantage of sole proprietorship is that the individual is fully exposed to personal liability with respect to any and all claims relating to the business.