---
title: "What is a sole proprietorship?"  
description: "What is a sole proprietorship?"  
author: "Erick Wilsom"  
published: 2023-10-20  
updated: 2023-10-24  
canonical: https://answers.mindstick.com/qa/104208/what-is-a-sole-proprietorship  
category: "business services"  
tags: ["business and industry"]  
reading_time: 1 minute  

---

# What is a sole proprietorship?



## Answers

### Answer by Kshitij Agrawal

1. Ownership

2. [Liability](https://answers.mindstick.com/qa/34159/nabard-has-signed-a-pact-with-which-bank-to-promote-joint-liability-groups-jlgs-in-bengal)

3. [Decision](https://yourviews.mindstick.com/view/88258/human-vs-machine-decision-making-in-war)-Making

4. Taxation

5. [Registration](https://answers.mindstick.com/qa/116207/what-is-lei-registration)

6. [Financing](https://www.mindstick.com/news/335/what-s-the-apple-of-discord-for-robinhood-s-ratings-dumping)

7. Continuity and [Succession](https://answers.mindstick.com/qa/107655/what-are-the-causes-of-the-war-of-spanish-succession)

8. Flexibility

While they offer simplicity and full [control](https://www.mindstick.com/articles/137/asp-dot-net-ajax-control-toolkit-calendarextender) over the [business](https://www.mindstick.com/articles/23272/why-software-localization-is-important-for-your-business), the main drawback is the unlimited personal liability. Many entrepreneurs eventually opt for more [structured](https://yourviews.mindstick.com/view/88498/underbust-corset-styling-guide-for-structured-everyday-looks) business forms, like limited liability [companies](https://www.mindstick.com/articles/331387/is-erp-suitable-for-only-big-companies) (LLCs) or corporations, as their businesses grow and their risk [tolerance](https://answers.mindstick.com/qa/48491/who-is-the-writer-of-the-tolerance) changes.


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Original Source: https://answers.mindstick.com/qa/104208/what-is-a-sole-proprietorship

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