Sole Proprietorship

The sole proprietorship is the most simple business form. The sole proprietorship is limited to one person. If you die the assets will go to your heirs but the business will no longer exist. The cost and ease of setting it up and simplicity of administration along with the tax benefit are the advantages.

There are disadvantages however. All of the business assets as well as personal assets are at risk. Creditors can go after your personal assets, home, savings, etc. if there are insufficient funds in the business. The same is true if there is a legal judgment for damages. If it belongs to you, they can attempt to acquire it!