Sole Proprietor

1. This literally means a “one owner” business. Usually this refers to an unincorporated business. The operator/owner is held fully liable for all business debts and expenses of the company.
2. In the context of taxation, it can refer to a single member LLC taxed as a sole proprietorship, where the income and expenses go on the individual’s Schedule C of his Form 1040 tax return. Although this often referred to as a “disregarded entity” that is only for tax purposes. For liability protection a single member LLC is still regarded as an entity separate from its member.