Meaning: the owner of a business or a holder of property, possessor.
Definition: A person who has the sole ownership or right on something; an owner of any property or business.
What is a Proprietor?
A Proprietor is an individual who owns a business establishment or sole ownership / proprietorship. The person has legal use of the assets and their operations. Income and Loss are tax on the individual person Income Tax Return.
What is Sole Proprietor?
A Sole Proprietor is a “one-man organization where a single individual owns, manages and controls the business”.
A Sole Proprietorship is the simplest business under which one can operate a business. It is also referred as the ‘Sole Trader’ or simply a ‘Proprietorship’.
In Sole Proprietorship, an enterprise is own and run by an individual person; in which there is no legal discrimination between the owner and the business entity. So, the owner has all the control over its elements and is legally responsible for the finances of the business i.e., loans, profit/loss, debts etc.
With reference to a business in Partnership, a Sole Proprietor is the only one who receives all profits and has to bear with all losses and debts by his own as well. A Proprietor is the only owner of all the assets of the business. So, the Proprietor has to bear alone with all the debts/loans of the business. The Sole Proprietorship is not a legal entity. It simply refers to a person who own the business and is personally responsible for its debts.
Therefore, a Proprietor can also use a TRADE NAME or a BUSINESS NAME rather using his/her legal name. For this, you have to legally trademark your business name if it differs from their own legal name; the process varying depending upon country of residence.
The Sole Proprietorship is a popular business form because of its simplicity, easy to setup, and at a very nominal cost. Therefore, the Setting-up Process of a Sole Proprietorship is completely dependent on Local Laws and Regulations. It can be obtained through the Small Business Development Center (SBDC).
A Sole Proprietor need only register his or her business name and get a local licences, and the Sole Proprietor is ready for Business.