A sole proprietor does not only have sole ownership of a firm, but he or she also runs the business alone. There is not a true separation between the person and the firm.
For you, this means that you receive 100% of the profit, but you are also 100% liable for the firm and any debt is incurred.
In the USA it is possible for a person who is a sole proprietor to choose a name for their firm, which is different from their personal name. In order to do this properly, one must obtain a Certificate of Assumed Name county that the firm is located. This Certificate of Assumed Name is also called “DBA” which stands for “Doing Business As”.
We are experienced in applying for DBAs for our clients. Of course it is possible to do this by yourself. You must contact the appropriate city Clerk’s Office to do so.
- Easy to establish
- All proceeds go to the business owner
- All business decisions and control are in the sole hands of the business owner
- It does not cost much to start a business
- There are tax benefits
- It is easy to close such a business
- Possibility to name the business something other than your own name
- Unlimited liability
- It is difficult to increase invested capital
- The business owner’s inexperience
- Limited possibilities for the business if the owner should become ill or die