Don’t Let the Stigma of Online Sole Proprietorship Drag You Under
It seems as though everybody is starting an online business these days. What with the advent of marketplaces like eBay, or Amazon, or etsy, it’s almost like the entire world has started marketing their own good or service. While there are plenty of good things about the opening of business for everybody, it often comes with certain (ridiculous) stigmas.
One of the stranger stigmas that we see applies to the sole proprietor. It’s especially strange, considering that sole proprietorships account for over 70% of businesses in the United States! However, part of the reason why the derision has cropped up is because it’s so easy to do. Many people connect sole proprietorships with less-than-savory multi-level-marketer scams, or perhaps somebody that’s gotten into selling their old junk on eBay and calling themselves a business owner.
However, there are many reasons why sole proprietorships are great, and today we’re here to celebrate them and how flexible they are. If you’re considering starting up your own online business and don’t know where to start, then a sole proprietorship is a great place to begin looking. Again, almost 70% of American entrepreneurs think so.
What Distinguishes a Sole Proprietorship from Other Business Designations?
Probably the most salient designation is that a sole proprietor doesn’t require registering any paperwork with the state, unlike LLCs or S/C corporations. A sole proprietorship is also headed by a single person, rather than a board of trustees. The sole proprietor is the one that gets all of the profits of his/her endeavors, but is also the only one to take the losses.
There are many pros to the sole proprietorship, but the main negative is that it means that the individual literally is the business: if the business goes bankrupt, so does the individual. With other sorts of business types, a business financial failure doesn’t necessarily mean a personal one.
However, sole proprietorships remain very popular with online businesses, since the only things you need to start one are a business name, a business banking account, and then a website. Beyond that, all you need is a product or a service!
Don’t Let the Negativity Drag You Down
Sole proprietorships are small and feisty, and for many it’s the cleanest, simplest, best way to get a business off the ground. You’re just as much a business as an LLC or corporation, and don’t let anybody else tell you otherwise.