sole proprietorship

Individual-owned enterprise entirely

A sole proprietorship is a business owned and operated by one person, with no legal distinction between the owner and the business entity.

The owner receives all profits but bears all liabilities personally.

It's the simplest business structure, requiring no formal registration beyond local permits: She runs her freelance design work as a sole proprietorship.

business

small business

Modest independent commercial venture

shop · boutique · storefront · e-commerce · retail · service provider · home-based business · side hustle · microbusiness · mom-and-pop

structure

unincorporated

Not legally chartered

EIN · DBA · business license · trade name

independence

autonomy

Independent decision-making capacity

consultant · contractor · artisan · craftsperson · tradesperson · self-reliance · flexibility · work-life balance · solo practice · independent contractor

liability

unlimited liability

Personal obligation for all debts

personal guarantee · asset protection · financial risk

Categories
Opposites
ownership structure

sole proprietorshippartnership

Shared business arrangement

multinational corporation · corporation · joint venture · general partnership · cooperative

legal complexity and formality

sole proprietorshipcorporation

Legally separate business entity

limited liability company · LLC · limited company

Family

appropriate, ownership, solely, propriety, proprietor, proprietary, appropriation, expropriate, misappropriate

Familiarity
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