The sole proprietorship
The sole proprietorship is a common business entity in which an individual, the sole proprietor, owns the business and its property. Indeed, from a legal perspective, the sole proprietor or owner is indistinguishable from the company itself.
The sole proprietor typically runs the company’s overall day-to-day operations but may have employees to help with specific aspects of the business. Employees may be full-time, part-time, or hired to conduct certain tasks. Any profit from the business is considered personal income of the sole proprietor and taxed accordingly. The owner is personally liable for any debt the business may incur.
In the next step you will learn more about the advantages of a sole proprietorship.
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