The owner of Battaglia’s Home says that the form of business he chose for his business is an S corporation. He mentions some reasons for not choosing to be a sole proprietorship. Which of the following is one of the reasons that he gives for not choosing to be a sole proprietorship?
1. A sole proprietorship is like running a small business out of your home and not for a business that is going to grow.
2. If the company is a sole proprietorship, the owner’s personal assets are protected.
3. A sole proprietorship is a legally independent entity.
4. The sole proprietorship type of entity only needs a small amount of capital to start the business.