A form of business organization in which one person is the sole owner. In effect, there is no distinction between the owner's and the business' responsibility regarding the commitments made on behalf of the business.
An ownership structure in which a single person is involved, does not include a separate legal entity, and which results in no taxation at the proprietorship level. Taxes are levied on the individual's income from the sole proprietorship.
A business owned by a single individual. A sole proprietor pays no corporate income tax but has unlimited liability for business debts and obligations.