A sole proprietorship is a business owned by a single individual and operated
by either the owner or an agent. It is the simplest form of business
organization and is usually best suited for small-scale organizations.
A sole proprietor is subject to state and local laws where
business operations are carried out. Such laws may include
regulations governing business permits, licenses and operations
under a trade name.
The management and control of a sole proprietorship is left
entirely in the hands of the owner or the owner's designated
agent. Consequently, the business will terminate on the death
or disability of the owner.
The owner is subject to unlimited liability with regard
to the debts of the business. Thus, a sole proprietorship
may be limited as to the amount of capital it can raise for
business operations. The borrowing ability of the business
will depend principally on the personal wealth of the owner.
The profits of the business are taxed directly to its owner.
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information contained herein is of a general nature and
is not intended to address the circumstances of any particular individual
or entity. Although we endeavor to provide accurate and
timely information, there can be no guarantee that such information
is accurate as of the date it is received or that it
will continue to be accurate in the future. No one should act on such information
without appropriate professional advice after a thorough
examination
of the particular situation.
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International, a Swiss cooperative.
© 2006 KPMG LLP, the
Canadian member firm of KPMG International,
a Swiss cooperative. All rights
reserved."
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