Proprietorships. A Proprietorship is a business venture owned by an individual who is personally liable for the venture’s liabilities. Many entrepreneurs start out as sole proprietorships. I don’t like this company structure because as I stated moments ago, you will be personally liable for your company’s liabilities. You’ll have unlimited liability, meaning your personal obligation to pay the venture’s liabilities are not covered by the venture’s assets. Yuck and ouch. First, your company must be a separate entity. It needs to start developing its own credit (do this by getting a VISA or Amex small business credit card and/or credit line at your local bank) plus it needs to take care of its own liabilities. You can’t grow a business with this structure—it is too risky.
To get great tools on how to create a strong foundation for your business’ future, feel free to join my Facebook Group, Business Renegades: http://tinyurl.com/6xos94
Christine Comaford, CEO Freedom Fighter
CEO of Mighty Ventures, Inc.
NY Times Best Selling Author of “Rules for Renegades”