One of the downsides of a sole proprietorship is the liability. In today’s litigious society, is it worth it? Is there a way to reduce your risk of liability as a sole proprietorship? If so, what? If not, why not? Thoughts?

Starting up and running a sole proprietorship in a litigious society is somewhat challenging but to a great extent, helpful. First, it serves to keep the organization in check. The owner, having it in mind that any legal action can be taken at any given time, becomes cautious and compliant in most of the endeavors (Blackett-Ord & Haren, 2015). On a personal stance, having a sole proprietorship is the best choice a business would ever make, despite the litigious nature of the society, it is still worth it. The benefits enjoyed by the owner makes it worth it, despite standing the risk of being sued in case of any misconduct or misappropriation. The owner is his manager, opening and closing the business when they wish, enjoy the benefits alone and requires no supervision. The liability issues remain to be a major drawback, even though they can be controlled. One can either obtain insurance or higher independent contractors.

References

Blackett-Ord, M., & Haren, S. (2015). Partnership Law. Bloomsbury Publishing.