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.