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
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Instead, the state views that business as not having an LLC and instead operating as a sole proprietorship. Kansas City Star, 14 Aug. 2025 Applicants need to register a sole proprietorship and meet the minimum income requirements. Stacey Leasca, Travel + Leisure, 3 Aug. 2025 Anticipating Higher Costs Of Doing Business The world of SMBs is vast, ranging from sole proprietorships to corporations. Sam Sidhu, Forbes.com, 30 July 2025 That’s good news for anyone operating as an S-corp, LLC or sole proprietorship. Blake Harrison, The Tennessean, 17 July 2025 Permanent and enhanced tax deductions Qualified Business Income (QBI) deduction: The 20% deduction for qualified business income, crucial for pass-through entities (sole proprietorships, partnerships, S corporations), is made permanent. Sydney Lake, Fortune, 8 July 2025 Most businesses in the U.S. are pass-throughs — a designation that includes LLCs, partnerships, sole proprietorships and S-corporations. Tobias Burns, The Hill, 4 July 2025

Word History

First Known Use

1903, in the meaning defined above

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

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Cite this Entry

“Sole proprietorship.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/sole%20proprietorship. Accessed 10 Sep. 2025.

Legal Definition

sole proprietorship

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