• Sole Proprietorships
Most small businesses operate as sole proprietorships. This is
the simplest form of organization and allows the single owner to
have sole control and responsibility. Some advantages of the
sole proprietorship include less paperwork, few legal restrictions,
owner retention of profits and ease in discontinuing the business.
Disadvantages include unlimited personal liability for all
debts and liabilities of the business, limited ability to raise capital
and termination of the business upon the sole proprietor’s death.