A sole proprietorship is a type of business entity that is owned and operated by one individual in which there is no legal distinction between the owner and the business. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the individual and all debts of the business are the individual's. Which means the owner has no less liability than if they were acting as an individual instead of as a business. It is considered a "sole" proprietorship in contrast with partnerships.
