One advantage of sole proprietorships is that under the principle of vicarious liability, the sole proprietor is not responsible for any tort committed by an employee during the course of employment.

Vicarious Liability

Refers to a legal principle where an entity (such as an employer) can be held responsible for the actions or omissions of another person (like an employee), under certain conditions.

Sole Proprietorships

A business structure where a single individual owns, manages, and is personally responsible for all aspects of the business.