Description
Liability
Sole proprietors are personally liable for the debts of their business. If the business is sued, your house, savings, and other personal assets are at risk.
Taxes
A sole proprietor is responsible to report all business profits as personal income, and pay self-employment tax on those profits, to cover Social Security and Medicare.
Hard to Raise Capital
There are no partners, shares, or membership interests in a sole proprietorship so it’s generally difficult to attract investors without changing your business structure.
Reviews
There are no reviews yet.