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A business structure in which an individual and his/her company are considered a single entity for tax and liability purposes. A sole proprietorship is a company which is not registered with the state as a limited liability company or corporation. The owner does not pay income tax separately for the company, but he/she reports business income or losses on his/her individual income tax return
This is a type of business entity owned & run by a single person. Normally unincorporated business depending upon the law prevailed in the country. A sole proprietor enjoys freedom in terms of non-compliance of corporate laws as it would required in case of companies.
The owner singally enjoys profits (after taxation) but have unlimited liability in case of debts& losses.
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