Sole Proprietorship and its Benefits

A sole proprietorship or a proprietorship is the most common and the easiest businesses to start up. The sport therapy clinic could be named after the owner I.e. Jon Smith or it could be under a d.b.a. “doing business as” i.e. Smith’s Sports Therapy Clinic. One of the major selling points of a sole proprietorship is that they “…have a lot of flexibility or ease when managing their business” (Lee, 2022). They are also easy to dissolve, one would just simply stop doing business.
The downside of being a sole proprietor is that if there was any legal action that is taken against the business, the owner would be personally responsible. They do not get to split the responsibility like a general partnership or be shielded if they were in an LLC or Corporation. An additional risk is that is that all of the capital would need to come from personal finances or loans that they could obtain on their own. This makes it difficult for owner to have access to the funds they may need during their start-up days.