According to the State of Washington Business Licensing Service, sole proprietorships are the most common form of business entity. In fact, many people may be operating as a sole proprietorship without being aware of it. A sole proprietorship exists when an individual or a married couple operates as a business; common examples could include music teachers, nannies, plumbers, handymen, carpenters, freelance writers, or housekeepers. Because many sole proprietorships are small operations, their owners are often under the mistaken impression that they do not need legal counsel or that they should just obtain representation on an ad hoc basis if the circumstances call for it. In reality, anyone who is operating their own business should seek legal counsel regarding their business and develop a relationship with an attorney who is familiar with representing small business owners.

The legal pros and cons of sole proprietorship

Sole proprietorships have various legal advantages and disadvantages that make them more suitable for some business than others. For example, there are no filing requirements to start a sole proprietorship, they are extremely flexible in terms of management, are not subject to corporate regulations, and may pay less in taxes than other business forms. On the other hand, the owner of a sole proprietorship is personally liable for all of the debts incurred by the business. Other business formations, including limited liability companies, S-corporations, and C-corporations shield their owners from personal liability in many cases.

While there are few legal formalities associated with operating a sole proprietorship, there are many ways in which an attorney can help sole proprietors successfully run their businesses and avoid legal liability. These include the following:

• Contract review and drafting
• Tax advice
• Representing you in business negotiations
• Ensuring that your operation complies with any applicable state and federal regulations

The exact way in which an attorney will be able to help you depends of the specifics of your business. An experienced lawyer will conduct a thorough analysis of your circumstances and advise you as to whether there are any critical legal issues that need to be attended to immediately.

Contact a Seattle and Tacoma business law firm today to schedule a consultation

Anyone who is operating a sole proprietorship in the state of Washington should contact an experienced business law attorney as soon as possible. With over 100 years of combined experience, the Seattle & Tacoma business lawyers of the Dickson Frohlich Phillips Burgess are equipped to provide individuals and businesses with top-notch legal representation and counsel.

For a phone consultation with one of our lawyers, call the Dickson Frohlich Phillips Burgess today at 206-621-1110 (Seattle), 253-572-1000 (Tacoma), 360-742-3500 (Olympia), 971-416-0881 (Portland).