Ease and low cost of formation and dissolution. It is easy and cheap to start, and it is also easy and cheap to dissolve. It requires small capital and there are no legal papers needed. Usually, only a license business papers are required. On the other hand, if such form of business organizaition decides to close its operations, there are no legal procedures to comply with. The owner has of course the obligation to pay his creditors.
Retention of all profits. All profits belong to the owner of the business. This is the greastest incentive or reward to the entrepreneur. This is the reason why many entrpreneurs prefer the sole proprietorship.
Independence and flexibility. The owner is the boss. He makes his own decisions and implements them in accordance with his will or wish. For instance, the owner can change his business hours, his products or prices. He can also change his style of management.
Tax advantage and less government regulation. The owner does not pay several kind of taxes. Usually, his earning are taxed as personal income tax.Likewise the government has very minimal regulation and supervision over a single proprietorship. The owners deal with the government when they pay their business licenses, permit and taxes.