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.

​ Was this Helpful? YES  NO 9 people found this helpful.

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

​ Was this Helpful? YES  NO 8 people found this helpful.

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.

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Related Terms

Mentioned in these terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
drawing account proprietor