A method of owning a business in which one person owns the entire business and reports all profits and losses directly on his or her personal income tax return, as contrasted with corporate, joint or partnership ownership A sole or individual proprietorship is easy to organize and flexible to operate It is frequently used in real estate brokerage An individual proprietor may run a brokerage company if he or she has a valid broker's license The proprietor may use his or her own name or a fictitious name previously registered as required by state law There is a growing tendency for sole proprietors to incorporate and thus take advantage of certain tax and fringe benefits, such as those provided by pension and profit-sharing plans
the simplest (and most popular) form of business organization The individual is personally liable for all debts of the business to the full extent of his or her property On the other hand, the owner has complete control of the business
A business carried on by the owner as an individual The owner of a sole proprietorship is personally and fully liable for all business debts; thus, personal property could be taken to pay business debts
A business owned and operated by an individual Subordination: The act of a creditor acknowledging in writing that a debt due him or her by a debtor shall be inferior to the debt due another creditor by the same debtor
A form of business organization in which an individual is fully and personally liable for all the obligations (including debts) of the business, is entitled to all of its profits and exercises complete managerial control
A business that is owned and operated by an individual owner without incorporation or partners The owner is liable for the business' debts to the full extent of his or her personal property
A business owned and managed by one person, who is personally liable for all business debts and obligations For tax purposes, the owner and his or her business are one entity, meaning that business profits are reported and taxed on the owner's personal tax return