Definition:
A sole proprietorship is a type business that is owned by one person, called the Sole Proprietor.
It is a legal business structure that establishes the business' owner and the business as being the same entity. In other words, everything the business owns belongs to the owner of the business. And, all debts and liabilities of the business are the personal responsibility of the sole proprietor.
The sole proprietor pays taxes for the business with their own personal tax return.
This form of business is also called “proprietorship” but is always owned by only one person.
Pronunciation: pro·pri'e·tor·ship'
Also Known As: Proprietorship
Common Misspellings: soul proprietorship, propriortorship
Examples:
Susan Brown is the only owner of her sole proprietorship catering business, known as "Flour Fun."
