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What Is a Sole Proprietorship?

By Kristi Waterworth – Updated Dec 16, 2024 at 1:49PM

Key Points

  • A sole proprietorship is easy to start as it requires minimal paperwork and no special tax forms.
  • Personal assets are at risk in a sole proprietorship since the owner and business are legally one entity.
  • Switching from a sole proprietorship to an LLC can protect personal assets and involves simple procedures.
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