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
Alan FarnhamEach 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.
Harriet E. Jones et al.Examples of sole proprietorship in a Sentence
Recent Examples on the Web
Employees, Contractors, and Bots One of the most interesting things about this, to me, is the idea that Gallagher’s shop is technically a sole proprietorship for the purposes of taxation, in the eyes of the IRS.
—John Werner, Forbes.com, 10 Apr. 2026
Decide if the business will be a sole proprietorship, partnership, limited liability company, or a corporation.
—Metro Creative Services, Boston Herald, 6 Apr. 2026
The returns show Reyes, who is a doctor at UC Davis Health System, set up a sole proprietorship that a campaign spokesperson said is connected to her membership on a board.
—Ben Paviour, Sacbee.com, 4 Apr. 2026
Because the effort required to tax every small business can cost more than the revenue generated, sole proprietorships can often claim tax exemptions for some of their income.
—Jason Ma, Fortune, 18 Jan. 2026
The Tax Foundation estimated that sole proprietorships in 2014 accounted for 69.8% of all private businesses, compared to 8.1% for C-corporations.
—Medora Lee, USA Today, 14 Jan. 2026
Rather, many chose to be sole proprietorships or partnerships, which, except for limited partners, are responsible for self-employment and personal taxes.
—Cheryl Winokur Munk, CNBC, 23 Oct. 2025
Instead, the state views that business as not having an LLC and instead operating as a sole proprietorship.
—Kansas City Star, 14 Aug. 2025
For example, the vast majority of small businesses are organized as pass-throughs, such as sole proprietorships and partnerships, where owners pay taxes on their business income through their individual Form 1040s.
—Howard Gleckman, Forbes, 16 Sep. 2024
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John Werner, Forbes.com, 10 Apr. 2026
Decide if the business will be a sole proprietorship, partnership, limited liability company, or a corporation.
—Metro Creative Services, Boston Herald, 6 Apr. 2026
The returns show Reyes, who is a doctor at UC Davis Health System, set up a sole proprietorship that a campaign spokesperson said is connected to her membership on a board.
—Ben Paviour, Sacbee.com, 4 Apr. 2026
Because the effort required to tax every small business can cost more than the revenue generated, sole proprietorships can often claim tax exemptions for some of their income.
—Jason Ma, Fortune, 18 Jan. 2026
The Tax Foundation estimated that sole proprietorships in 2014 accounted for 69.8% of all private businesses, compared to 8.1% for C-corporations.
—Medora Lee, USA Today, 14 Jan. 2026
Rather, many chose to be sole proprietorships or partnerships, which, except for limited partners, are responsible for self-employment and personal taxes.
—Cheryl Winokur Munk, CNBC, 23 Oct. 2025
Instead, the state views that business as not having an LLC and instead operating as a sole proprietorship.
—Kansas City Star, 14 Aug. 2025
For example, the vast majority of small businesses are organized as pass-throughs, such as sole proprietorships and partnerships, where owners pay taxes on their business income through their individual Form 1040s.
—Howard Gleckman, Forbes, 16 Sep. 2024
Cite this Entry
“Sole proprietorship.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/sole%20proprietorship. Accessed 11 May. 2026.
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