Q: Can a sole proprietorship have employees?A: Yes, sole proprietorships can hire employees, but the owner is responsible for managing payroll and tax compliance.

Q: What are the tax implications for sole proprietors?A: Sole proprietors benefit from pass-through taxation, where business income is reported on the owner’s personal tax return.

Q: Is a sole proprietorship suitable for scaling a business?A: While ideal for small businesses, growth may require transitioning to more complex structures like LLCs or corporations to raise capital and limit liability.