what is a sole proprietorship 
a sole proprietorship is an unincorporated business with one owner there is no legal separation between the company and the owner who receives all profits but is liable for all debts and losses a sole proprietorship is the easiest type to establish and a popular choice for small businesses individual contractors and consultants most small businesses start as sole proprietorships and either stay that way or expand and transition to a limited liability entity or corporation establishing a sole proprietorshipthe easiest way to start a one owner business is through a sole proprietorship the debts of the sole proprietorship are also the debts of the owner however all profits flow directly to the business owner there are certain steps individuals should take to get started including the number of small businesses in the united states in 2023 together these businesses employed 61 6 million people across the country sole proprietorship vs llc vs partnershipa sole proprietorship is very different from a corporation a limited liability company llc or a limited liability partnership llp in that no separate legal entity is created as a result the business owner of a sole proprietorship is not exempt from liabilities incurred by the entity 