Sole Proprietorship

Definition: A business owned by one individual without a separate entity that legally separates the owner from the business.

Example

An individual operates a business personally, reports its income under the applicable tax rules, and remains responsible for its obligations.

Keep the distinction clear

A single-owner LLC or corporation remains a separate legal form. An LLC may nevertheless be treated like a sole proprietorship for federal tax purposes. Brokerage licensing and registration rules still apply.

Related terms

Corporation · Limited Liability Company (LLC) · Corporation Sole

Keep studying

Corporation Sole, Sole Proprietorship, and Single-Owner Businesses

References: SBA: choosing a business structure · IRS: business structures · Florida Statutes 475.15: brokerage registration

Pronunciation (US): SOHL pruh-PRY-uh-ter-ship (capitals show stress)

Pronunciation reference: Merriam-Webster