A Sole Proprietor is a solo business owner. A sole proprietorship is a business that is operated by an owner and is taxed on the owner's personal tax return. The owner collects all the profits and losses, and also incurs all of the liabilities of the business. Starting a sole proprietorship is an uncomplicated process which involves only a license to operate your business in your city, other local requirements, and possibly filing a "fictitious name" (DBA) statement.
A sole proprietorship, like other business forms, is liable for taxes on business income, sales taxes, and other relevant taxes. The sole proprietor is also required to pay self-employment tax on the income of the business.
