You would like to start a cellular telephone equipment service business. You are considering organizing the business as a sole proprietorship. Identify the advantages and disadvantages of owning a sole proprietorship.

Three advantages of owning a sole proprietorship

options:

Does not need to follow the generally accepted accounting principles (GAAP).

Easy to organize

Less government regulation

No continues life or transferability of ownership

No income tax on net income

The owner pays taxes on proprietorship's earnings since it is not a separate tax entity

Unification of ownership and management

Unlimited liability of owner

List three disadvantages of owning a sole proprietoship