Sole Proprietorship
A sole proprietorship is a business run by an individual, as an individual. Because this is not distinct from the owner, the owner retains full liability for all obligations of the business, including debt, lawsuits and regulatory compliance obligations. Often, the individual operating the business will do so under a ficticious business name, or "DBA." This does not, however, distinguish the individual from the business for any limitation of liability or other purpose.
This form of business is rarely advisable. In certain cases, where threat of a lawsuit is minimal and other obligations are also limited, this method of operation may be appropriate.
To discuss whether this business form is suited to your situation, please call The Alvarez Firm to schedule an appointment.
