Apply It 7.1: Owning a Business, Sole Proprietorship

  • Understand the factors that go into choosing the best organizational type for your business
  • Understand the advantages and disadvantages of sole proprietorship

Starting a Business

You can view the transcript for “Types of Business Organizations” here (opens in new window).

If you wanted to turn your hobby of baking cupcakes into a business, which is the best organization type to choose?

In some states, there are “cottage food” laws that apply to home-based bakeries. These laws are aimed at small businesses that operate from someone’s home kitchen rather than a commercial kitchen. Research cottage food laws in your home state if you are thinking about baking as a business and want to start small.