Saturday Archive Dive: Disadvantages to Sole Proprietorship
Saturday, July 20, 2013 at 5:00AM Today's dive into the deep archive of Webcomics.com takes us to July 13, 2011, when we discussed two of themajor disadvantages to identifying as a sole proprietorship.
As small businesspeople (or, more flatteringly, people who manage small businesses) most of us fall into the legal category of a sole proprietor. And, for most of us, the sole proprietorship is the easiest and most advantageous structure for our businesses to be run under. After all, we're not generating the income or taking the risks that would cause us to structure our businesses as LLCs or corporations.
However, as our businesses grow and the revenue grows to a more significant size -- not to mention the Intellectual Property (IP) being amassed, it becomes increasingly important to be aware of the two major drawbacks of the sole proprietorship.