sole proprietorship

noun

plural sole proprietorships
: a business practice consisting of a single owner
The wife's business is not a partnership but a sole proprietorship. It belongs to her, not the couple.Alan Farnham
Each business organization is structured in one of three ways: (1) as a sole proprietorship, (2) as a partnership, or (3) as a corporation. A sole proprietorship is owned and operated by one individual. The owner reaps all profits and is responsible for all the debts of the business.Harriet E. Jones et al.

Examples of sole proprietorship in a Sentence

Recent Examples on the Web Filing a document with a government agency to obtain an IRS employer identification number, a fictitious business name, or a professional or occupational license does not create a new entity and does not make a sole proprietorship filing such a document a reporting company. Kelly Phillips Erb, Forbes, 18 Sep. 2024 No, unless a sole proprietorship was created (or, if a foreign sole proprietorship, registered to do business) in the U.S. by filing a document with a secretary of state or similar office. Kelly Phillips Erb, Forbes, 18 Sep. 2024 For example, Biden could oversee the expiration of a 20% tax deduction for specific income generated at pass-through businesses, such as sole proprietorships, that file taxes through a personal owner. Max Zahn, ABC News, 30 Jan. 2024 One way to avoid this is to set up a management company such as a sole proprietorship or an LLC and pay a legitimate management fee to this entity structure. Karlton Dennis, Forbes, 19 May 2021 LLCs can be taxed as a sole proprietorship, partnership, or corporation. Dallas News, 24 Jan. 2023 This workshop will explain federal and state income taxes for businesses; sales tax and payroll taxes; different income tax implications for sole proprietorship, LLC, S Corp, and C Corp; and business license, AB5, various deductions, and retirement plan options. Laura Groch, San Diego Union-Tribune, 9 Oct. 2022 Many of the individuals targeted during the investigation listed the fake business as a sole proprietorship, barber shop or hair salon. Angie Leventis Lourgos, Chicago Tribune, 22 Sep. 2022 The organization also provides entrepreneurial and technical assistance and an entire curriculum — in English, Spanish, Tagalog and Korean — on how to create a business plan and launch a limited liability company or sole proprietorship. Cindy Carcamostaff Writer, Los Angeles Times, 15 Sep. 2022

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'sole proprietorship.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1903, in the meaning defined above

Time Traveler
The first known use of sole proprietorship was in 1903

Dictionary Entries Near sole proprietorship

Cite this Entry

“Sole proprietorship.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/sole%20proprietorship. Accessed 5 Nov. 2024.

Legal Definition

sole proprietorship

noun
: a business owned and controlled by one person who is solely liable for its obligations compare corporation, partnership
Last Updated: - Updated example sentences
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