Easy Setup and Low Cost: Establishing a sole proprietorship is straightforward, with minimal legal formalities and low startup costs.

Full Control: The owner has complete control over decision-making, allowing for quick and flexible responses to business needs.

Simplicity in Taxes: Income from the business is reported on the owner’s personal tax return, avoiding corporate tax rates and simplifying the tax process.

Direct Access to Profits: The owner keeps all the profits, as there are no shareholders to distribute them to.

Less Regulatory Burden: Sole proprietorships face fewer regulations and reporting requirements than corporations or partnerships.

Privacy: The business’s financial details are private, unlike corporations, which are required to disclose financial information.

Easy to Dissolve: If the business closes, dissolution is simple with minimal legal procedures or costs.

Unlimited Liability: The owner is personally liable for all business debts and obligations, which can put personal assets at risk.

Difficulty in Raising Capital: Sole proprietors may have limited access to funding and often rely on personal savings or loans, as investors prefer entities with limited liability.

Limited Life of the Business: The business’s existence is tied to the owner’s, so it may end if the owner becomes unable to run it or passes away.

Heavy Workload: Managing all aspects of the business alone can be overwhelming and lead to burnout, especially in larger operations.

Limited Growth Potential: A sole proprietor may find it challenging to scale the business, as resources, skills, and time are limited.

Difficulty in Attracting Talent: Without the ability to offer stock or significant benefits, sole proprietors may struggle to attract highly skilled employees.

Less Credibility: Some clients, suppliers, and lenders may perceive a sole proprietorship as less stable or credible compared to other business structures.