About Sole Proprietorship

It is the simplest business form under which single person can operate a business and is not a legal entity, It simply refers to a person who owns the business and is personally responsible for its loss. It can operate under the name of its owner, such as Chandan's Nail Salon. The name is simply a trade name--it does not generate a legal entity separate from the sole proprietor owner.
Due to its simplicity the sole proprietorship is a popular business form, no difficulty of setup, and small charge. A sole proprietor want only register his/her name and lock local licenses, and the sole proprietor is ready for business. A distinct difficulty is that the owner of a sole proprietorship remains personally responsible for all the business'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.