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Being your own boss can have many advantages, but in order to be successful you have to be self-disciplined, determined and willing to work hard, this type of person best suits a sole proprietorship because the owner is the operator of the business, often performing all of the business functions.

There are many benefits in becoming a sole proprietor, but if you are the type of person that can follow directions well, but has a hard time instigating, than being a sole proprietor might not be the best choice for you.

In order to run a sole proprietor establishment you have to know a little bit about all aspects of business, because you will be performing most all of the duties, so it is not enough just to know how to make a product, you have to make sure the inside as well as the outside of your business runs effectively, and that includes budgeting and paying your bills.

One of the things that can go wrong when you are self-employed involves collecting sales tax, so it is important to understand your local sales tax, and what to do if you collect it and how to pay it back to the state. The last thing you want to do is accidentally be spending the states sales tax, and then not be able to pay your quarterly sales tax. You will need to know how to do payroll if you choose to have employees and you will have payroll taxes. Payroll taxes in general are due on a quarterly basis.

There are a few different types of business entities but the sole proprietor is the least complicated of the business entities to choose from. Some of the other type of business entities are partnership, LLC, Corporation, and S-Corp to name a few or a person can choose to own a franchise business.

Owning and operating an establishment that sells products of a registered trademark or brand such as Burger King is considered a franchise. However, if you conduct business without creating a separate business entity, than you have established a sole proprietorship business.

One of the advantages of a sole proprietorship business, is because it is the simplest type of business to form, the owner and the business are one. In general, sole proprietor's businesses make up the vast majority of all businesses and usually are small establishments.

One of main reasons why a sole proprietorship is so attractive is because this type of business can be created purely by desire by the owner, unlike a partnership or LLC, where you have to be in agreement between two or more in order to conduct a business, or a corporation

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