Sole Proprietorship Defined: A sole proprietorship is the simplest business form which one can operate a business. A sole proprietorship is not a legal entity but simply refers to a person who owns the business and is personally responsible.
The sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost. A distinct disadvantage, however, is that the owner of a sole proprietorship remains personally liable for all the business’s debts. So, if a sole proprietor business runs into financial trouble, creditors can bring lawsuits against the business owner. If such suits are successful, the owner will have to pay the business debts with his or her own money.
We do sole props out of one of our offices in Ottawa, Ontario, Canada.