Why is Sole Proprietorship a Good Business Structure?
A sole proprietorship is a good business structure because it is simple. It attaches a business to an individual, and therefore keeps documentation to a minimum. If the business owner uses his or her name in the business name, a “doing business as” or DBA form is not required to be on flie with the local governement and state. If the business name does not involve the individuals name, this form is required. It is what gives a person legal right to conduct business under that name–through a bank account and so forth. Each state has different policies regarding how to appropriately file a DBA form. With a sole proprietorship, this is all it takes to get the business started. Most people begin with a sole proprietorship because of how easy it is to get started, though there are extra taxes involved. It doesn’t cost a lot of money, and it gets them legally covered until the business grows to require something more. As a sole proprietorship, the individual’s personal assets are liable sho
