Advantages of running her own business.
1) Easy application for business permits and such. Lesser paperwork compared with partnership and corporation.
2) Decision making is solely under the owner's control. She does not need other persons approval on how to run her business daily.
3) Profit from her business is entirely her own. It is part of her personal income.
4) Filing of taxes is easier compared with partnership and corporation. Less paperwork to prepare and store.
Disadvantages of running her own business.
1) As sole proprietor, all the debts and obligations incurred by the business is your responsibility. In the event that the business fails, other personal assets must be used to pay off outstanding obligations.
2) The life of the business is co-terminus to the life of the owner. If the owner becomes incapacitated, both mentally or physically, or the owner dies, the business is terminated.
3) Since all decision is solely reliant on the owner's discretion, there will come a time when he or she might feel stressed out in running the business.
4) Sole proprietor businesses will have a harder time of asking for loan grants. This is because the life of the business is determined by the capacity of the owner to run the business. It is not an assured collateral for any business loans.
