Sole Proprietor Definition
An individual who both owns and operates their own business is known as a sole proprietor.
Sole Proprietor Expanded Definition
A sole proprietor is a single person who owns a business. This one person can make all of the decisions and reap all the profits but is also the only one financially and legally responsible for any losses or debt incurred by the business.
There is no separation between the sole proprietor as a person and the sole proprietor as a business. This is referred to as unlimited liability and creates an element of risk.
Last Updated By
Rachel Blakely-Gray | Apr 18, 2023