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Finance Dictionary and Glossary of Investment Terms
Sole proprietorship
Definition 1.
A business owned by a single individual. A sole proprietor pays no corporate income tax but has unlimited liability for business debts and obligations.
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Definition 2.
A business structure in which an individual and his/her company are considered a single entity for tax and liability purposes. A sole proprietorship is a company which is not registered with the state as a limited liability company or corporation. The owner does not pay income tax separately for the company, but he/she reports business income or losses on his/her individual income tax return. The owner is inseparable from the sole proprietorship, so he/she is liable for any business debts. also called proprietorship.
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Definition 3.
A business organization that is unincorporated and has only one owner.
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