noun The exclusive owner of a business
A sole proprietor is a type of business structure where an individual owns and operates the business on their own. They are personally responsible for the business's debts and liabilities.
From a legal perspective, sole proprietors do not have a separate legal entity from their business, so they are personally liable for any legal issues that may arise.
In accounting, sole proprietors report their business income and expenses on their personal tax returns using Schedule C.
Sole proprietors are common among entrepreneurs who are starting small businesses and want to have full control over their operations.
Many small businesses, such as freelancers, consultants, and independent contractors, operate as sole proprietors.
A writer may operate as a sole proprietor, managing all aspects of their writing business independently.
A psychologist may choose to operate as a sole proprietor, offering therapy services to clients without partners or shareholders.
A consultant may work as a sole proprietor, providing expert advice and services to clients on a freelance basis.
A photographer may function as a sole proprietor, handling all aspects of their photography business including client bookings, shooting sessions, and editing.
Freelancers in various fields such as graphic design, web development, and marketing often operate as sole proprietors, working independently for multiple clients.