Small business answers — NOW!

Sole proprietorship advantage

What is the advantage of having a sole proprietorship? 
Since no one who has an idea for a business immediately files incorporation documents, virtually all businesses are born as a sole proprietorship, or the plural ownership version, a partnership.

Simplicity is the primary advantage to this business structure, and the reason 72.7 percent of all U.S. firms operate as sole proprietorships.

This form of business is most commonly used for sideline ventures, as evidenced by the fact that half of all sole proprietors earn salaries and wages from another job, along with their business income.

Search further for other facts about this topic. 
Brain Trust contributor: Author of J.K. Lasser's Small Business Taxes 2007
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of
Print this page   Bookmark this page   E-mail this page to a friend   Go back to previous page
AskJim ID: 763