A Sole Proprietorship is a business model that allows for only one owner. All responsibilities of the business, including all monetary means come from the business owner. All profits and losses are reported on the owner’s personal tax return. A sole proprietorship is the most common of all the business forms; many businesses actually start as sole proprietorship and evolve from there. One of the main disadvantages of a sole proprietorship is that all liability is the responsibility of the owner. Here are some characteristics of sole proprietorship and some of their liabilities.
All liability for a sole proprietorship is the responsibility of the owner. If there is an accident then all the costs would come from the owner. In most cases insurance policies will cover the majority of any claims that might be made. If there are other damages that need to be covered then the owner’s personal possessions and assets will be utilized.
A sole proprietor, according to DOS.NY.GOV is personally res
