sole proprietorship

noun

plural sole proprietorships
: a business practice consisting of a single owner
The wife's business is not a partnership but a sole proprietorship. It belongs to her, not the couple.—Alan Farnham
Each business organization is structured in one of three ways: (1) as a sole proprietorship, (2) as a partnership, or (3) as a corporation. A sole proprietorship is owned and operated by one individual. The owner reaps all profits and is responsible for all the debts of the business.—Harriet E. Jones et al.

Examples of sole proprietorship in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Converting a sole proprietorship to an LLC, moving revenue to a new company, or changing the business name might make sense for tax or liability reasons, but doing it during the loan process resets the underwriter’s view of the business’s history. — Karen Koehler, Miami Herald, 31 Aug. 2026 The majority remain sole proprietorships earning under $100,000 a year — too small to hire employees, too small to build wealth, too small to transform communities. — Deloris Thomas, Chicago Tribune, 19 July 2026 Depending on ownership and elections, an LLC may be taxed as a sole proprietorship, partnership, S corporation, or C corporation. — Nancy Ashburn, Encyclopedia Britannica, 23 June 2026 Employees, Contractors, and Bots One of the most interesting things about this, to me, is the idea that Gallagher’s shop is technically a sole proprietorship for the purposes of taxation, in the eyes of the IRS. — John Werner, Forbes.com, 10 Apr. 2026 See All Example Sentences for sole proprietorship

Word History

First Known Use

1903, in the meaning defined above

Time Traveler
The first known use of sole proprietorship was in 1903

Rhymes for sole proprietorship

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Browse Nearby Words

soleplate
sole proprietorship
soler
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Cite this Entry

“Sole proprietorship.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/sole%20proprietorship. Accessed 6 Sep. 2026.

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Legal Definition

sole proprietorship

noun
: a business owned and controlled by one person who is solely liable for its obligations compare corporation, partnership
Last Updated: - Updated example sentences
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