Disadvantages of the Sole Proprietorship

Every business structure has good and bad side. The sole proprietorship maybe the most convenience of business structure, because you have complete control to the business. But this business structure also have disadvantage. One major disadvantage of the sole proprietorship is that you have unlimited personal liability in your business. Because you are not required to share profits with anyone, you also responsible for the full amount of business debts if your business is fail.

At sole proprietorship, beside have complete control, you also have total responsibility. Sometime you can’t leave the business just for vacation. If you want to go for vacation or get illness, you may close the business for a while, except you believe with your employees to open the business while you are not there. Another obvious disadvantage is limited capital.

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