Individual proprietorship is one of the most popular forms of an enterprise. Majority of companies exist in the form of sole proprietorship. This form of company imply only one owner, who is totally responsible for operations of his/her business (Moye, 2004, p.13)

• Liability. This form of an enterprise has unlimited liability. The owner of the company is responsible for debts of his/her business. In case when the business has more debts than assets, proprietor will cover shortage with his/her own assets.
• Income taxes. Income of the sole proprietorship is not a subject of taxation. Profit is taxed as an income of the proprietor.
• Longevity. Comparing with other forms of an enterprise, sole proprietorship has limited life-cycle. When the owner of the business dies, the business will be closed. Although, the proprietor can pass his/her ownership to relation, in most cases sole proprietorship stops its existence with the death of the founder. After death, business is treated as a part of the owner’s estate.
• Control. The owner of the business is responsible for all operations of the proprietorship. The founder is the CEO and the only investor of the company.
• Profit retention. The whole amount, earned by sole proprietorship is at the owner’s disposal. There no commitments to share the profit with other parties.
• Convenience. Sole ownership is very easy to establish. Establishing of the individual proprietorship includes simple registration process and there are no fees to pay for its registration. This form of an enterprise also has no burdens as reporting requirements.
• Burden. The main burden of the sole proprietorship is limited ability to expand. Sole proprietorship is not eligible to issue stocks or bonds. There are only to ways to finance business for the owner – to invest profit or take a loan from a bank. Loan will be given according to the owner’s creditworthiness. But these way cannot provide business with substantial funds (e.g. for capital investments).