What are some of the characteristics of a sole proprietorship
Sole Proprietorship has:
- A principal agent relationship which may be terminated at will with certain limitations (See Foley).
- No entity separate from the individual owner
- There is NO Statutory law that defines the organization or maintenance
- Agency Law governs sole proprietorship
- It is easy and inexpensive to start and maintain. You DO NOT have to file anything with the Secretary of State.
- At the end of the business venture, the owner is allowed to keep all cash and assets of the sole proprietorship after business expenses have been paid. There is no sharing of assets unless there was a contract to share with agents. The flipside is that the owner is responsible to pay any cash shortfall for the business.
- The owner is personally liable for all business obligations
**Some BA may be small or large (EX: Thomas H. Lee, Co.)
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