sole proprietorship


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Sole proprietorship

A business owned by a single individual. A sole proprietor pays no corporate income tax but has unlimited liability for business debts and obligations.

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.

sole proprietorship

a BUSINESS or firm which is owned and controlled by a single person. See PARTNERSHIP, JOINT-STOCK COMPANY, LIMITED LIABILITY.

sole proprietorship

Ownership of a business by an individual rather than a partnership, corporation,or limited liability company.

References in periodicals archive ?
A sole proprietorship is not legally separate from its underlying owner, so for tax purposes, a sole proprietor is considered to have earned all the profits of her business.
In 2012, most of the largest principal industrial sectors reported increased sole proprietorship profits (net income less deficit).
A sole proprietorship avoids the double taxation that occurs with C Corporations.
When the courts recharacterize an unincorporated spousal business from a sole proprietorship to a partnership, they determine that the spouses are equal partner.
H1: Sole Proprietorship net income reported on Schedule C is inversely related to MTRs.
The default form, for those new entities failing to file the required Form 8832, is the partnership form for more than one owner and sole proprietorship for one owner entities.
If the single member is an individual, the LLC files as and is taxed as a nonfarm sole proprietorship.
The conversion of a sole proprietorship into an LLC may result in the former proprietor recognizing income, due to required loss recapture under the at-risk rules.
VARS Investment Group offered the opportunity for him to startup a sole proprietorship installing and maintaining debit machines, and point of sale machines.
Maples is the owner of a small, sole proprietorship, Maples Communications.
Ricci tells the Broscharts they have two options: They can form a corporation, which creates a corporate shield between the individuals and the business, or they can form a sole proprietorship, in which case an umbrella liability rider can be added to their home insurance.
Why is it that the corporate form of business can protect individual assets while a sole proprietorship or a general partnership cannot?