Business Structures: Sole Proprietorship

A sole proprietorship is as the name suggests, a business with one owner. Of the four structure types, this one is the most common. In fact, over 80 percent of businesses nationwide are organized as sole proprietorships. A business organized as a sole proprietorship is not separate from the owner, but merely a name with which the owner represents him/herself to the public. They are essentially inseparable.

What Is Good about This Business Structure:

• Simple to organize.
• Owner makes all decisions.
• Minimum legal restrictions.
• Owner receives all the profits.
• Business is easy to discontinue.

What Is Bad about this Business Structure:

• Owner has unlimited liability.
• Owner is personally liable for the debts of the business.
• You may have difficulty raising capital.

For more information about business structures, bookkeeping methods and taxation, the Oklahoma Tax Commission offers Business Tax Workshops. Make your reservation today!