What is sole proprietorship?
Understand the Problem
The question refers to the definition and details of 'sole proprietorship' as a business structure, emphasizing its characteristics and implications.
Answer
A sole proprietorship is an unincorporated business owned by one person.
A sole proprietorship is an unincorporated business owned and run by one individual with no legal distinction between the owner and the business.
Answer for screen readers
A sole proprietorship is an unincorporated business owned and run by one individual with no legal distinction between the owner and the business.
More Information
This type of business is the simplest form, with low startup costs and straightforward tax reporting. However, the owner is personally liable for all business debts.
Tips
A common mistake is confusing a sole proprietorship with an LLC; only the latter provides limited liability protection.
Sources
- What is a Sole Proprietorship & How to Start One | Wolters Kluwer - wolterskluwer.com
- What Is a Sole Proprietorship? - Investopedia - investopedia.com
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