I am a home-based business owner. Is it okay to be a sole proprietorship?

Asked on 1/23/2009 by Kevin Conroy - elbrus Global
Answered by ABC Staff

Of Course! Many home businesses start with the owner as sole proprietor. This is the oldest and simplest form of business structure. Basically, it means the owner is also the manager. But legally, it depends on your business.

A sole proprietorship the simplest structure to form, because at the moment of conception, all businesses are sole proprietorships. Just remember that as long as you have not incorporated, your personal estate is vulnerable to legal actions against your business.

There are only two reasons not to incorporate:

1. The cost
   
2. The difficulty, neither of which really outweigh all of the advantages.
   

If you are considering changing from a sole proprietorship to a partnership or company, it is a good idea to get legal and financial advice first to help you determine which structure would suit you best.

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