). Sole proprietorship accounts for 74 percent of all businesses in the USA and their sales make up to 6 percent of the total There has to be no sharing of the ownership, though the number of employees can be very large as per the wish of the owner. There is no difference between the business and the owner as per the law. The individual may establish the business with a trade name or in his/her own name, but he/she can not use a corporation to run the business anyway, or it would be no more a sole proprietorship. The sole proprietorship has many advantages and disadvantages, all of which fundamentally stem from the fact that the owner and the business are one and the same entity in the eyes of the law. The first advantage of the sole proprietorship is that there is no application of double tax. The second advantage of the sole proprietorship is that it enables the individual to have a reduction in the number of losses which in turn reduces the total burden of the income tax upon the family, particularly when the sole proprietor is married and has filed a joint tax return (“Doing Business”). Establishing a sole proprietorship is cost effective and easy (Ward). . The Types of Business.
“Chapter 9 – Types of Business Ownership.” n.d. Web. 16 Nov. 2011.
“Doing Business as a Sole Proprietor.” Poznak Law Firm Ltd. n.d. Web. 16 Nov. 2011.
“Forms of Business Ownership.” n.d. Web. 16 Nov. 2011.
Ward, Susan. “Choosing a Form of Business Ownership.” 2011. Web. 16 Nov. 2011.
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