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Sole Proprietorships
Sole Proprietorships are generally businesses owned and run by one individual. The owner of the business controls the business, receives all the profits, and is responsible for the losses. There is no shield or protection to the owner for the business debts, and there is no separation of the business assets from the debtor's personal assets. The advantage of a sole proprietership is that it is easily formed and is a simple way to do business. An individual can file an assumed name certificate and start doing business. The disadvantages are many, in times of trouble. If the business gets into trouble, the sole proprietor's assests are automatically thrown into the pot, along with the business assets, and can be taken by the creditors. There is no protection. For example, someone runsa trucking business and one of the drivers hits someone on the highway; the injured person may sue the owner, the sole proprietor.
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