Meaning & use
sole proprietor
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Meanings
nouncountablebusinesslegal
A person who owns and runs a business alone, with no legal separation between themselves and the business.
Grammar: Countable; 'a sole proprietor' takes the article, and the plural is 'sole proprietors'.
Patterns
- a sole proprietor of something
- operate as a sole proprietor
As a sole proprietor, Maria is personally responsible for any debts of her bakery.
He registered as a sole proprietor before selling his furniture online.
Many freelance designers work as sole proprietors rather than forming a company.
nouncountablelegalfinance
In tax and legal use, the person whose name is on the business and who reports its income as personal income.
Grammar: Often appears on forms and in tax guidance, such as 'sole proprietor income'.
Patterns
- file taxes as a sole proprietor
A sole proprietor reports business profit on his or her personal tax return.
The form asks whether you are a sole proprietor or a partnership.
Word forms
| plural | sole proprietors |
|---|
Common combinations
- register as a sole proprietor
- You can register as a sole proprietor online in a few minutes.
- work as a sole proprietor
- She works as a sole proprietor, selling jewelry at markets.
- sole proprietor tax return
- Your sole proprietor tax return must include all your business income.
- sole proprietor liability
- Sole proprietor liability means your own savings can be used to pay business debts.
- a self-employed sole proprietor
- A self-employed sole proprietor does not pay herself a salary.
Synonyms and how they differ
- sole trader
- This is the usual British term for the same thing, while 'sole proprietor' is more common in American English.
- self-employed person
- This is a broader everyday phrase that does not state the legal structure of the business.
- freelancer
- This describes someone who sells services to several clients, and a freelancer may or may not be formally set up as a sole proprietor.
- owner-operator
- This stresses that the owner also does the daily work, but says nothing about legal or tax status.
Word family
- proprietor noun
- an owner of a business
- proprietorship noun
- a business owned by one person
- property noun
- something that is owned
- proprietary adjective
- owned or controlled by a particular company
Commonly confused: sole proprietor or sole trader? sole proprietor or partner?
sole proprietor vs sole trader
The meaning is the same, but 'sole trader' is the British form and 'sole proprietor' is American.
sole proprietor vs partner
A partner shares ownership and profits with others, while a sole proprietor owns the business alone.
Practice
Because she is a sole proprietor, Lena is ____ for her business debts.
Choose one answer.
A sole proprietor has no legal separation from the business, so she is personally responsible. 'Not responsible' describes a limited company owner and does not fit.
Make it your own
Write a sentence using “sole proprietor”, then check it and compare it with the examples above.