Nancy Hancock Quoted in CNN Article on Sole Proprietorships

Pullman & Comley attorney Nancy A. D. Hancock, co-chair of the Business Organizations and Finance practice, sheds light on sole proprietorships in a recent CNN article. Defining sole proprietorship as “a business without an entity,” Nancy emphasizes that it lacks the formal registration of LLCs or corporations. She warns that this structure offers no legal distinction between the business and its owner, meaning personal assets are at risk in the event of a lawsuit. Despite its simplicity and affordability, she advises caution, noting, “For anyone with any assets or aspirations of ever having any assets, a sole proprietorship can be risky.”

Nancy also highlights the limitations of sole proprietorships, including their inability to raise capital through investments or offer shares. This structure can complicate separating personal and business finances and may result in higher tax rates. She underscores that while business insurance can offer some protection, it doesn’t fully mitigate the risks. Her insights are valuable for those considering whether a sole proprietorship is the best choice for their business needs.

To read the full article, please click here.