Can sole proprietorship companies become very successful?

Answer 1

The form of the business (Proprietorship, LLC, S-Corp, etc.) has less to do with success than just about any other factor. Statistically, more sole proprietorships fail than any other type simply because this is the most common form for a new business and businesses less than one year old have a higher failure rate than any other age group.

But, to say that a sole proprietorship has less chance to be successful than any other form, everything else being equal, is flat out wrong. Put another way the failure rate would not fall if all new businesses incorporated from the get-go.

Answer 2

Any company can become very successful regardless of its legal status (s corp, c corp, sole proprietor, partnership, etc). However, if the company begins to do really well, you may want to incorporate in your state of operations, just for the simple fact that if someone sues you under a sole prop. you and everything you own personally can be up for grabs. If you were, lets say an s corp, you have the "corporate veil" that protects you and in the case of a lawsuit the most they can get from you is the assets that the company owns.

Answer 3

in many cases that is perfect to commence as a Sole Prop and then develop into an S corp once you're clearing a large number of income. (more beneficial than 50K a twelve months always) it could be perfect to fulfill with a CPA to communicate your ideas. In my adventure LLC does no longer some thing for you if you're the in effortless words proprietor.

Answer 4

yes they can, if managed carefully.

advantages are:
you will be your own boss
your business accounts will be a secret to yourself
easy to set up
easy to keep control, as the business will be small

disadvantages are:
noone to share business problems with
risk of unlimited liability, that means the sole trader can be forces to sell personal assets to cover any business debts
nobody to take over the business after they die

that's all i could think of.

Answer 5

Yes but it is alot of hard work.

One advantage is you don't end up with something like if you have a partner, there is always the tendencecy for one to view that they do more work than their partner.


This is a real problem.

Answer 6

No, In today business envrioment i can't see how anyone can build a company that will produce a healthy life. Business is trouble, with wal-mart and ARS theirs little room for profit.