A sole proprietorship is the simplest, quickest, and least expensive way to commence a business. The assets and liabilities are owned by a single individual (or married couple) who merely to register the business name and acquire any necessary licenses to be ready for business. Advantages are: It is easy to start. You are in control of decisions to be made. Small companies may received income tax advantages. Freedom to run business the way you like. Disadvantages are: Owner is subject to unlimited personal liability for debts of business. Success of business is directly related to personal efforts put into business. Sickness and death threatens business. Difficult to keep personal affairs separate from business.