WHAT IS SOLE PROPRIETORSHIP?

A sole proprietorship is an unincorporated business owned and run by one individual with no distinction between the business and the owner.

Sole proprietorships are the simplest and most common form of small business ownership, representing 73% of all small businesses in the United States today (a total of 23 million were reported by the IRS in 2010 and again in 2018 by the small business administration (SBA)).

The business owner is entitled to all profits and is personally responsible for all of the business's debts, losses, and liabilities, and pays personal income tax on profits earned from the company. The owner is not required to formally register their business with their state as corporations or LLCs do.

With...