What is a Sole Proprietorship?
Accounting for a Sole ProprietorshipAll profits and losses directly affect the finances of the owner meaning that all assets of the business are owned by the owner and all debts must be paid from their personal resources.
The owner has unlimited liability as in some partnerships. The difference being the owner is not in business with any partners.
A sole proprietor may in fact do business with a trade name other than their legal name. As a result, the individual can also open a business account in a bank.