What is a Sole Proprietor?
A sole proprietor is one individual who owns a company that is not incorporated or registered with the state as a limited liability company (LLC). Sole proprietors may or may not have employees.
In a sole proprietorship:
- The business does not exist separately from the owner.
- The risks of business apply to the individual's personal assets, including those not used for the business.
- The sole proprietor reports business income on his or her individual tax return.