In its simplest terms, a sole proprietorship refers to a business that is formed by a single person who will generate a profit or loss. It is the most basic form of business that you can create. For an even more thorough explanation of a sole proprietorship, check out
As far as examples of such type of businesses—there are a ton! Here are a few I can think of off the top of my head:
- Freelance writers
- Financial planners
- House cleaning services
However, there are countless more.
Many people opt for sole proprietorship because it’s the most basic form of business to establish and manage. However, sometimes the concept of the business is much too complex to comfortably fit under this formation. Two of the most significant considerations come down to taxes and liability. Remember, in a sole proprietorship, the individual and the company are not separate which makes the person vulnerable in legal situations.
Are you considering establishing a sole proprietorship? You should talk it over with aWe’re the world’s largest platform of fully vetted and highly skilled freelance attorneys.