If the corporate form of business organization has so many advantages over the sole proprietorship, why is it so common for small businesses to initially be formed as sole proprietorships?

Question

Business

Haley Mullins

5 August, 21:35

If the corporate form of business organization has so many advantages over the sole proprietorship, why is it so common for small businesses to initially be formed as sole proprietorships?

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Taylor Buckley · Answer 1

Answer and explanation:

A Sole Proprietorship is a type of business with a single owner who pays income tax over the revenues. The reason why they are more common compared to Corporations relies on the fact that a Sole Proprietorship is less regulated by the government so it can be opened and dissolved easier.