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Sole Proprietorship

Definition - What does Sole Proprietorship mean?

A sole proprietorship is a business in which one person owns the business and also runs it. He or she owns all of the business's assets, and he or she is also legally responsible for all of its liabilities. Sole proprietorships are an alternative to other types of businesses such as a partnership or a corporation.

Justipedia explains Sole Proprietorship

Sole proprietorships are strongly geared toward the individual. They enable people to simply begin working for themselves and keeping the profits they make. An example of a sole proprietorship would be a man who starts selling handmade wooden chairs, and does this as a business. If licenses are required for the industry that the sole proprietorship is operating in, then the proprietor will have to obtain all of the necessary licenses. Also, he or she may have to select a "doing business as" name, depending on the area where the business is located.

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