About Sole Proprietorship

It is the most basic business form under which a single person can conduct a business. It is not a formal entity; it merely refers to a person who owns the firm and is personally liable for its loss. It can operate under the owner's name, for example, Chandan's Nail Salon. The name is merely a trade name; it does not create a different legal entity from the sole proprietor.
The sole proprietorship is a popular business structure due to its simplicity, ease of setup, and low cost. All a lone proprietor needs to do now is register his or her name and secure local permits, and he or she is ready to go. A significant disadvantage is that a sole proprietorship's owner is individually liable for all of the company's debts. So, if a sole proprietor business runs into economic trouble, creditors can bring lawsuits against the business proprietor. If such suits are successful, the proprietor will have to pay the amount overdue with his/her own capital.