Glossary Terms

Proprietorship

A proprietorship, also often called a “sole proprietorship,” is a business structure wherein there is no legal distinction between the owner and the business.

A proprietorship, also often called a “sole proprietorship,” is a business structure wherein there is no legal distinction between the owner and the business.

One individual who handles the bulk of the work and operations typically runs a sole proprietorship. Income and losses from a sole proprietorship are taxed on the individual’s income tax return. There is no business liability exemption for a proprietorship.