In early February, I went to a workshop at the City of Nampa Economic Development Office. The workshop was run by Richard K. Murry of the Dispute Resolution Center of the Northwest. He went over the special legal properties of the four types of business, which I’m going to discuss in the next four business blog posts. This is valuable info for anyone considering a business.
First of all is the Sole Proprietorship. This is what most businesses start as: one person starting and running a business. As a sole proprietor, you are totally responsible for raising all of the money for your business yourself and usually have to do it completely out of pocket or through personal loans. The big thing with a sole proprietorship is that, legally, the business and the person are considered one entity with one name (although you can also get a DBA – doing business as). Therefore, if a disgruntled customer or client decides to sue, they can legally put into play all personal assets of that business owner.