A sole proprietorship is the simplest form of business, as the name suggests you are going to be the sole owner of a business which means you are fully responsible for all debts and obligation for your business. At the same time, you can keep all the profits too. However, creditors can make a claim against your personal and business asset.
Advantages and Disadvantages of Sole Proprietorships.

Advantages and Disadvantages of Sole Proprietorships

Advantages:

• Easy and inexpensive to set up.
• Less paperwork compares to incorporation.
• More control over decision making.
• If the business is not doing well, you can deduct your losses from personal income
• You got to keep all your profit.

Disadvantages:

• The biggest disadvantage is an unlimited liability, which means the creditor can make a claim against your personal assets.
• Another disadvantage is your income is taxable at a personal rate.
• Capital is difficult to raise
• Continuity is another issue with sole proprietorships, that is your business will stop if you are not working.