proprietorship financial definition of proprietorship. proprietorship finance term by the Free Online Dictionary.

Proprietorship

An unincorporated business that is owned and operated by only one person who has complete liability for all assets, and complete rights to all profits.

Sole Proprietorship

A business owned by a single person that is not a corporation, a limited liability company, or anything else. The sole proprietor who owns the proprietorship must list all profits and losses on his/her personal tax return and does not file a separate return for the business. Additionally, the proprietor is personally responsible for all losses and debts the business incurs. Some small businesses begin as sole proprietorships and then become something else. Other sole proprietorships are part-time businesses that their owners operate on the side.

proprietorship

A firm with a single owner, chiefly one who acts as the manager of the business. Income, expenses, taxes, liability for debts, and contractual obligations are inseparable with respect to differentiating the owner from the business. Compare corporation, partnership. See also unlimited liability.

proprietorship

Ownership. Those who own their own business in their own personal name, without a corporation or partnership or other such business structure, is said to have a sole proprietorship.

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proprietorship