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Pros And Cons Of Sole Proprietorship

1754 Words8 Pages

A sole proprietorship has many befits to them. Owners have the sole control of everything that happens to their business and is responsible for making any and all decisions regrading it. Many businesses start as proprietorship before becoming other business forms. Any income that is made by the business is the owners income. Sole proprietorship also experience very little government control and few restriction and are taxed differently then many businesses. One of the best things about opening a sole proprietorship business though is the speed and ease at which the business can be started (“The Pros and Cons of a Sole Proprietorship”, n.d.).
There are of course problems with having a sole proprietorship business. Owners are 100% responsible …show more content…

This is even true with a one-person corporation. It’s a popular option with doctors practices, lawyers and trades owners (Ward, n.d.). A corporation is different from some companies because it can own property, be sued or sue, and enter into a contract (Althouse, Allan, Hartt, 2017). Unlike sole proprietorships and partnerships, corporations are taxed separately, having to file their own tax returns. Another good thing about corporations, is that they don’t dissolve when an owner dies, they live on with an unlimited life span (Ward, …show more content…

All the services that need to be provided are being provided by the owners company and has no need to set up a joint venture
• Franchise
Franchises are a very important part of the business world. When traveling from city to city we look for places like Tim Hortons or Boston Pizza. These are businesses that we are familiar with and trust the services that we receive. People thinking of opening a franchise joint has to pay a franchise cost to the owners. But this gives them the chance to run a business that is already familiar to people, instead of starting a business from scratch. There is often already training programs and financial assistance available to these starting franchises.
Opening a franchise business can be very expensive. On top of the building, supplies and employees, they must pay a franchising cost to the owners. This can be a relatively small amount, but it can also be quite substantial. People opening these franchises also can find that they have very little control and are restricted in their operating. This is because the owners of the franchise company have developed a operating system that they cannot

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