Sole Proprietorship

[sohl pruh-PRAHY-i-tuhr-ship]

What is the definition of Sole Proprietorship?

A sole proprietorship is a type of business entity that is owned and operated by a single individual, with no legal distinction between the owner and the business.

Using Sole Proprietorship in an Example

In a sole proprietorship, the owner is entitled to all profits and is responsible for all the business's debts, losses, and liabilities. For instance, if a sole proprietorship business incurs debt, the owner's personal assets can be used to satisfy the debt.

Using Sole Proprietorship in a sentence

John decided to start a sole proprietorship because he wanted full control over his business decisions and the simplicity of setting up the entity.

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