Sole Proprietorship
From LawDepot Law Library
Definition of "Sole Proprietorship"
A sole proprietorship is the simplest form of business entity. In a sole proprietorship there is only one owner (the sole proprietor) who operates in his or her personal capacity. The sole proprietor risks unlimited liability for the debts and obligations of his or her company. This means that all of the sole proprietor’s personal possessions are at risk if the business should fail or be sued. One benefit of a sole proprietorship is that it enjoys a single level of taxation. This means that the sole proprietor will pay personal income taxes for the profits made by the business.
