BizTerm Definition
Sole Proprietorship
Short Definition
A business owned by one individual
Full Definition

The most common legal form of business ownership; about 85 percent of all small businesses are proprietorships.  It is one where the owner and operator of the business is an individual.  Consequently, the liability of the owner is unlimited in this form of ownership. Many individuals prefer this method of ownership because it is simple, often requires little or no regulatory filing and provides complete control.

TAXATION
Sole proprietorships, for tax purposes, are treated by the IRS not as an entity such that all income and expenses are reported on what is called a Schedule C.

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