Since, the profits and liabilities rest on one single person, incorporating a Sole Proprietorship has both pros and cons to it, namely:
- easy, simplified registration;
- profits are directly accrued;
- helpful for small businesses;
- flexible form of conducting business for small interval of time.
- Personal liability of owner and losses directly affect him;
- difficulty in obtaining bank loans or lines of credit;
- non-transferability and non-heritability.