# Sole proprietorship

> Sole proprietorship — 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.

Source: https://lopifi.com/glossary/sole-proprietorship
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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.

## Words this system refuses for it

- single-member LLC (an entity that limits liability)

- **Category:** Entity types
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** self-employment-tax