MICRO KNOWLEDGE

A Sole Proprietor can be defined as someone that owns a non-incorporated business by themselves. Some people assume that if they are the only member of a domestic limited liability company, (LLC) they are considered a Sole Proprietor as well. They would not be considered a Sole Proprietor if their Limited Liability Company is being treated like a corporation.

Advantage of a Sole Proprietorship is less paperwork to start the business and more control over the day-to-day operations of the business. Disadvantages is more personal liability at risk and a potential harder time in getting a business loan. 

Key Take Aways:

1. Defined as someone who is the sole owner of the business.
2. Less paperwork to get started.
3. Less liability protection.