Sole ProprietorshipA sole proprietorship is a business owned and controlled by a single individual. There are more sole proprietorships than any other type of business (Lau, 2011). This is a type of business that is simple to start and simple to end. The owner has the freedom to determine the hours of operation, the services or goods to be provided, the location where it operates and the contracts to be entered into without the need to consult any other party. However, with complete control comes complete responsibility. An owner is personally responsible for all financial obligations, whether debts arising from business operations or restitution ordered as a result of lawsuits filed by third parties. It can also be difficult to obtain financing for a sole proprietorship because banks view the business as an individual. Often, banks treat sole proprietorship loans like personal loans to the owner and require collateral. All responsibility lies with the sole proprietorship owner. This can put the owner in a very difficult position if an individual were to sue the business. The courts view the owner and the business as one and the same person. So when the business is sued, they are essentially suing the owner. All of the owner's personal assets, such as their home, car, retirement account, and bank account, are at risk. Debts that the business is unable to cover must also be transferred to the owner. Income tax. The owner and his business are considered one individual by the government. As such, they are taxed together, only once, for personal income tax. All profits made through the sole proprietorship constitute direct income to the owner and are taxed as such. Any business expenses or losses can be deducted from their total personal income......amidst the paper decisions......ement of the business. Retention of profits. Profits are divided between the general partner and the limited partner as designated by their agreement when they became partners. Sponsors generally receive a fixed amount of profits. Location (expansion). All business decisions belong to the general partner. It is entirely within their power to move or grow the business as they see fit. Convenience or burden (compliance). A general partner who is not obligated to any outside party. To maintain limited liability, the sponsor must not be involved in any part of the business outside of its financial investment.Works CitedLau, T. a. (2011). The legal and ethical business environment. Irvington, NY: Flat World Knowledg.Stevick Jr., G.E. (2006). The essentials of business insurance. Bryn Mawr, PA: American College of Financial Services.