Thomas Finley Lawyer

Sole Proprietorship

The sole proprietorship is the least complicated business structure. In this type of business entity, the individual owner carries on their own business, even though it may be operating under an assumed name. According to Texas law, a sole proprietorship has no separate legal existence apart from the sole proprietor. He or she has all the control over and responsibility for the business decisions and operations.

The sole proprietor possesses all the business property as an individual. However, he or she also assumes absolute personal liability for all debts and other claims against the business. Although sole proprietorships are the simplest forms of business structure, they also have the most risk in terms of liability from their operations.

Sole proprietors often contact Waco business lawyer Thomas P. Finley, Jr. to seek legal assistance in forming a new business entity, including an LLC, LP, or corporation, for their existing sole proprietorship business. This is to allow for future growth and get additional liability protection.

Read FAQs about the formation of Texas business entities on the Office of the Texas Secretary of State website.