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 or her 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.