What is a Sole Proprietorship?
A sole proprietorship is a business where a single owner has complete control over a business, enjoys all the profits, makes all decisions and has the liability and responsibility for the debts and obligations of the business. A sole proprietorship is not recognized as an entity separate from its owner or proprietor and is not taxed separately. The income the owner receives from the business is taxed at the owner’s personal income tax rate. All of the contract, tort, lease and other obligations and liabilities of the business are the direct obligations and liabilities of the owner. A sole proprietorship may be owned jointly by a married couple.