There are a few options when it comes to passing down a sole proprietorship. It really depends on how they want to pass it along. If they want to start the process of transferring ownership when the kids are adults, they can convert it to a corporation or LLC. This way the father can retain ownership while living and can show the ropes to his sons. When he passes away the business can still continue. In contrast, a partnership would dissolve once he passes so they need to keep that in mind for the future.