(Optional) Summarize the legal requirements and the advantages and disadvantages of a sole proprietorship.

Summary should include the following points:

  • Owners do not have to meet any legal requirements for establishing a sole proprietorship; however, local governmental regulations may apply.
  • Owners must comply with all applicable government rules and regulations
  • Owners may withdraw funds from the company rather than taking a salary.
  • Owner would be subject to unlimited liability for action.