Sole Proprietorships Flashcards
1
Q
Personal liability of owners?
A
Yes; better for low risk business
2
Q
Tax issues
A
Not a taxable entity
3
Q
Transferability issues
A
Whole business must be sold
Capital difficult to raise
4
Q
Registration with government agency requirements?
A
Sometimes:
Business license with city (required by most cities)
Fictitious business name statement (FBNS) with county
5
Q
Formation
A
Easy to form
Just start doing business
6
Q
Sole Proprietorship
A
An unincorporated business owned and operated by one person, who is generally called the sole proprietor (individual proprietor)
