SOLE PROPRIETOR 

A SOLE PROPRIETORSHIP is described as a business entity which has no separation of business and personal assets / liabilities. The "Sole" refers to having but one owner who takes on all responsibilities (good AND bad) of the company.

Advantages: More simple to form, simpler taxes, less government regulations, less complex company structure.

Disadvantages: Complete personal liability and loss potential, harder to obtain financing, no perpetutity - cannot sell or transfer ownership, the business dies when the owner leaves, retires or dies and so does the Contractor License.

 

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