Sole proprietorship
In accounting, sole proprietorship means a business one individual owns without forming an entity. Its profit is reported on the owner's Schedule C with self-employment tax on Schedule SE, and the owner is personally liable for its debts.
Authority: IRS — Sole proprietorships (opens in a new tab). Sources
The lessons that teach this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
- EntitiesThe entity menu › Sole proprietorshipNo entity, no shield: the business is its owner, reported on Schedule C with self-employment tax on Schedule SE.4 min
- EntitiesChoosing an entity in practiceA decision table by goal — raise VC, bootstrap, consult, side project, real estate — and why Northwind is a Delaware C corporation.8 min
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- single-member LLC (an entity that limits liability)
Also in Entity types
Defined in Lexicon. This page is generated from that document, so the two can't disagree.