Sole Proprietorship

A sole proprietorship is a type of business entity owned and operated by a single individual, where there is no legal distinction between the owner and the business. This means that the owner is personally liable for all debts and obligations of the business. Sole proprietorships are often easy to establish, require minimal regulatory burden, and allow for complete control over business decisions.

Examples of sole proprietorships include:

• A local bakery owned and operated by a single baker.
• A freelance graphic designer who manages their own cLient work.
• A consultant offering services inDependently without a formal business structure.

Cases related to sole proprietorships:

• Case 1: A sole proprietor takes out a loan for business operations. If the business fails, Creditors can pursue the owner’s personal Assets.
• Case 2: A freelance writer files taxes as a sole proprietor, reporting income and expenses on their personal tax return.