addition to the risk of loss of the business, the sole proprietor also bears the burden of unlimited personal liability. Id. at 60. If the business fails, as the sole proprietor, Ms. P would be personally liable to her creditors for any outstanding debts of the business. The creditors would have the legal right to come after Ms. P's personal assets, such as her home or bank accounts, to collect on any outstanding balances owed to them. Id. at 60. Further, since a sole proprietorship is not a separate…
Words 3192 - Pages 13