Sole Proprietorship Definition

A sole proprietorship is a business that is owned and operated by one person. The owner is responsible for all aspects of the business, including its debts and liabilities. A sole proprietor can operate under their own name or choose to do business using a trade name.

There are several advantages to operating as a sole proprietor, including:

-simple and inexpensive to set up

-all profits go directly to the owner

-owner has complete control over the business

-relatively easy to dissolve

There are also some disadvantages to operating as a sole proprietor, including:

-owner is personally liable for all debts and liabilities of the business

-business may have difficulty securing financing

-ownership can not be transferred to another person