proprietorship

Definition

A business structure in which an individual and his/her company are considered a single entity for tax and liability purposes. A proprietorship is a company which is not registered with the state as a limited liability company or corporation. The owner does not pay income tax separately for the company, but he/she reports business income or losses on his/her individual income tax return. The owner is inseparable from the proprietorship, so he/she is liable for any business debts. also called sole proprietorship.

Use proprietorship in a sentence

I had sole proprietorship, which meant that it was me and only me that would be held responsible for what happened.

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You should always try to make sure you have the correct proprietorship in place when you will be opening a new branch.

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Since the owner of a proprietorship has not taken any additional legal steps to register his business as a company or corporation (that is, an entity separate from himself), you can imagine that insuring proprietorships correctly can be a difficult matter.

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drawing account proprietor