What are the downsides of a sole proprietorship?
A sole proprietorship is the simplest business structure out there: You’re the owner, and you’re the business. Setting one up is easy, and you have total control. But while that simplicity is appealing, it’s important to understand the disadvantages of a sole proprietorship before you take the plunge.
It’s not all sunshine and roses. While being your own boss sounds great, there are some serious potential pitfalls to consider. This article will give you a balanced view of this business structure.
We’ll explore the main disadvantages, including unlimited personal liability, the difficulty of getting funding, and the limits it can place on your business’s growth. Knowing these potential problems will help you decide if a sole proprietorship is really the right move for you.