sole proprietorship


A business structure in which an individual and his/her company are considered a single entity for tax and liability purposes. A sole 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 sole proprietorship, so he/she is liable for any business debts. also called proprietorship.

Use sole proprietorship in a sentence

If you happen to be in sole proprietorship then most of the risk and the rewards will end up on your shoulders.

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I don't trust other people to be apart of my business and I like to keep things simple so I just stuck with a sole proprietorship to sell my custom paperweights.

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I would like to open my own business without much interference from the government, I will probably need to have a sole proprietorship to have a simple business that I can manage and run myself.

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1040 Form Schedule C sole proprietor