The simplest and most common form of business ownership, a sole proprietorship is a business owned and run by someone for their own benefit. The business’ existence is entirely dependent on the owner’s decisions, so when the owner dies, so does the business.
 
Advantages of a sole proprietorship:
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• All profits are subject to the owner

• There is very little regulation for proprietorships

• Owners have total flexibility when running the business

• Very few requirements for starting—often only a business license

 
Disadvantages:
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• The owner is 100% liable for business debts

• Equity is limited to the owner’s personal resources

• Ownership of proprietorship is difficult to transfer

• No distinction between personal and business income