6.1.1 Sole Proprietorship

Successful Moo Duk Kwan Studio Ownership

6.1.1 Sole Proprietorship

A sole proprietorship is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between the business and the owner. You, the owner, are entitled to all profits and are responsible for all your business’s debts, losses and liabilities.

If you choose to operate under a name different than your own, you will most likely have to file a fictitious name (also known as an assumed name, trade name, or DBA name, short for “doing business as”). You must choose an original name; it cannot already be claimed by another business.

Advantages Disadvantages

* Easy and inexpensive to form

* Easy tax preparation * Unlimited personal liability