Final answer:
The primary advantage of a sole proprietorship over a corporation is subject to little government regulation and no special taxes. Sole proprietors experience personal liability and have complete control over their business, which differs from the limited liability and stricter regulations faced by corporations.
Step-by-step explanation:
When examining the advantage owners of a sole proprietorship enjoy over the owners of a corporation, several key points emerge. Unlike corporations, sole proprietorships are subject to little government regulation, allowing for easier setup and management. Sole proprietors can benefit from the lack of special taxes as they simply pay tax on the income generated by the business. However, it is important to note that they do face personal liability, which can be a significant drawback in comparison to the limited liability offered to corporate shareholders.
While corporations can raise capital more effectively through the selling of stock or corporate bonds and face limited liability, they are also subject to double taxation and stringent government regulations. In addition, setting up a corporation can be expensive and time-consuming. In contrast, sole proprietorships offer simplicity and the retention of complete control, which can be appealing to entrepreneurs who wish to start and manage their business on their own terms.