BUSINESS LAW
, Sole Proprietorship
A sole proprietor is a self-employed
individual who runs their own business.
They’re in charge of all legal aspects of
the business, including employment,
decision-making, etc.
, How Sole Proprietorships are Formed:
• Only need to register their name
• Get a local license in order to operate their business
• File a Fictitious Business Name Statement if they’re using
a business name that’s different from the legal name
• Get an Employer Identification Number if they have
employees
Legal Structure of a Sole Proprietorship:
• Don’t have a separate legal entity.
• Have unlimited liability.
• The owner is liable for all their business debts.
• Therefore, if the business lands in financial trouble, creditors
can file lawsuits against the owner, not the business.
• If the lawsuit is successful, the owner would have to pay all
the business debts with their own money.
, Sole Proprietorship
A sole proprietor is a self-employed
individual who runs their own business.
They’re in charge of all legal aspects of
the business, including employment,
decision-making, etc.
, How Sole Proprietorships are Formed:
• Only need to register their name
• Get a local license in order to operate their business
• File a Fictitious Business Name Statement if they’re using
a business name that’s different from the legal name
• Get an Employer Identification Number if they have
employees
Legal Structure of a Sole Proprietorship:
• Don’t have a separate legal entity.
• Have unlimited liability.
• The owner is liable for all their business debts.
• Therefore, if the business lands in financial trouble, creditors
can file lawsuits against the owner, not the business.
• If the lawsuit is successful, the owner would have to pay all
the business debts with their own money.
