In a sole proprietorship, a single person has complete control over the business. As a sole proprietor, your decisions determine the trajectory of the company, and you don't have to consider the opinions of third parties such as shareholders or legal partners.

This is a level of freedom that isn't afforded with other business types.The unprecedented level of control and the freedom to maneuver are the main reasons many young entrepreneurs choose this type of business structure. It allows the owner to experiment with different ideas and concepts before choosing the best approach.

In other words, a sole proprietorship enables business owners to take a certain degree of risk and test out their ideas before adopting a more formal business structure. Sole proprietors also receive all the profits and are free to sell or transfer their company to another person anytime they want.

What are the pros and cons of operating your business as a sole proprietorship? What kind of a business might be suited to be operated as a sole proprietorship? Why or why not?