Pods changed from a sole proprietorship to a corporation. what would be a major reason for making this ownership change?

Question

Kaylin Solomon

Business

17 January, 07:03

Pods changed from a sole proprietorship to a corporation. what would be a major reason for making this ownership change?

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Pamela Sweeney · Answer 1

The major reason for making this type of ownership change is liability protection. A sole proprietor is personally responsible for all the debts his company generates, he can lose everything he has if he generate a big debt. In corporations, there is corporate liability shield which protects the owners of the company from loosing their personal assets as a result of business liability.