What is Sole Proprietorship?
The simplest business structure: you and the business are legally the same person.
A sole proprietorship is what you automatically are the moment you start doing business under your own name without forming anything. No paperwork, no filing fees — you just... start.
The catch: there's zero legal separation between you and the business. If the business owes money or gets sued, that's your money and your problem. It's the fastest way to start and the riskiest way to stay.
Great for testing an idea this weekend. Once there's real money or real risk, most people upgrade to an LLC.
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.