A sole proprietorship is a business run exclusively by one person. “According to 2003 data, there were more than 17.5 million businesses operating in the United States and they generated $969 billion in revenue” (Hodgetts & Kuratko, 2008). Setting up a sole proprietorship is easy if an owner uses his or her own name or can use a business name by filing it with the city where the business is located. The financial benefits for a sole proprietorship include all profits belonging to the business owner minus taxes, Social Security and Medicare paid. Some owners have higher credit ratings because they have both business and personal assets behind them. Lack of restrictions and freedom to run your own business and some may need to obtain a license from the state. Having a sole proprietorship holds the secret to operational sales, financial strength and profit margins. Having your own business brings a lot of personal satisfaction and the success of your business is the amount you contribute. Disadvantages of a sole proprietorship include unlimited liability and the debt incurred is borne by the owner. “Creditors have a claim on these debts and can enforce it against both the business assets and the owner's personal assets” (Hodgetts & Kuratko, 2008). Since a business tends to be smaller for a single owner, the amount of capital to be raised for operations is limited. Most banks only lend 50% of the business value. The limited duration of ownership depends on the individual's financial situation, dying, going to prison, or choosing to close the business presents risks. “A partnership, as defined by the Uniform Partnership Act (UPA), is an association of two or more persons continuing as co-owners of a for-profit enterprise” (Hodg...... middle of document... ... the activity includes “not wasting irreplaceable hours of one's life in meetings; avoiding the politics of a large and often unforgiving workplace, spending time with the family or pets the company works for” ( Coffey, 2008). a plan of attack, work space should be divided, installing separate phone lines would help keep work and staff separate, whose house or all houses should be used by the three owners, as well as insurance for all partners. Works CitedCoffey, LT (2008, October 1: Setting Up a Home Business Retrieved April 12, 2011, from www.today.msnbc.msn.com: http://today.msnbc.msn.com/id/26976151/ns/today-money/Hodgetts, R. M., & Kuratko, D. F. (2008). Small business management. In R. M. Hodgetts and D. F. Kuratko, Small Business Management (pp. 158,159,161,164,168,177). Hoboken: John Wiley & Sons.