We have things to say

April 11, 2019

The Benefits & Concerns of Sole Proprietorship

When striking out on your own business venture, there are a few ways of organizing your business. LLCs, LLPs, and sole proprietorships can all have their own unique benefits to the enterprise. As you’d expect, a sole proprietorship is the simplest organization, and may be an option for smaller “ma and pa” style businesses. The same principle is true for all businesses, though. It needs to be taken seriously, with the best services available, such as the best credit card processor for small business.

Pros: Fewer requirements

If your business objectives are modest, a sole proprietorship is definitely the easiest way to get going. Startup costs are lower, you aren’t required to register with the state—even tax time is easier. You are able to file your taxes along with your personal taxes, with the addition of a few forms.

<h3Concerns

So you want to keep things simple by operating as a sole proprietorship. Great, but don’t get too comfortable. Business is business, and you’ll have plenty of concerns. Here are a few.

• Financing
  Lenders typically don’t provide business loans to sole owners, so you may be restricted in your options there.
• Liability
  Anything can happen in business. When you’re the sole proprietor, the weight of any business responsibilities falls squarely on your shoulders. That means debts, lawsuits, and other obligations will lie on your shoulders, and could affect your personal finances. That’s probably the main reason larger companies go with a limited-liability entity.
• It’s still got to run like a business.
  One of the most significant drawbacks of this type of business is that it can be all too easy to fall into bad business habits. One such tendency is that owners treat their business as just another part of their life, being relaxed or casual about operations. When your business is small, it can be easy to form these bad habits, and because it’s just you, you can ostensibly get by just functioning with the business all in your head. It’s best to treat your business like a real live business, from day 1, so that you can form good habits that propel you to your next phase, whatever that may be.

In this vein, take your business seriously by using the tools that businesses use. Find the best credit card processor for small business now, rather than waiting to grow a little. Moolah is highly affordable, and makes it easy to start, no matter what size your business is. Business is business, and with the powerful tools that Moolah makes available to you, you’ll be ready for success, no matter what the size and organization of your business.