Sole Proprietorship vs Corporation
A sole proprietorship has only the owner. It is easy to start a sole proprietorship business since it requires little capital and has the lowest regulatory burden. The owner’s personal assets are at stake for paying business debts. You are in full control of all business decisions. A corporation is a legal ‘person’ that is separate from its owners. It can therefore sue or be sued.
A sole proprietorship is a business model with one owner. A corporation limits liability for owners.
Comparison of Sole Proprietorship and Corporation
The difference is the number of owners. A sole proprietorship is a business with one owner. A corporation limits liability for owners.
Similarities between Sole Proprietorship and Corporation
A sole proprietorship has one owner. A corporation limits owners’ liability. Sole proprietorships have simpler requirements.
- Sole proprietorship benefits and considerations.
- It costs little to start a sole proprietorship. But corporations limit liability.
- Factors include locations, industry and exit strategy. Consider strengths and weaknesses.