Sole Proprietorship

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. The most common and simplest form of business is a sole proprietorship. An individual proprietor owns and manages the business and is responsible for all transactions. The owner is also responsible for all debts and liabilities. The owner pays taxes on income from the business as part of personal income tax payments.