Unlimited liability is one of the most important and potentially risky features of a sole proprietorship. It means that the sole proprietor is personally responsible for all the debts and obligations of the business. Below is a structured explanation of how unlimited...

Yes, a sole proprietorship can sell, but the process differs from selling a corporation or other registered business entity. A sole proprietorship is not a separate legal entity, so what is sold is not the business itself, but...

Yes, a sole proprietorship can have employees. While the business is owned and operated by a single individual, it is fully permitted to hire and manage staff. Below is a structured explanation across five key areas: 1. Legal Authority to Hire A sole proprietor has...

Yes, a sole proprietorship may be involved as a supplier. Sole proprietors are legally permitted to supply goods or services to individuals, businesses, institutions, and government entities. Below is a detailed explanation across five key areas: 1. Legal Authority to...

Yes, a sole proprietorship can be an employer. Even though it is owned and operated by a single individual, a sole proprietorship can legally hire and manage employees. Below is a detailed explanation across five key areas: 1. Legal Right to Employ A sole proprietor...

Yes, a sole proprietorship can borrow money, but since it is not a separate legal entity, the individual owner is personally responsible for the loan. Below is a structured explanation of how borrowing works for sole proprietorships under five key areas: 1. Borrowing...

Yes, a sole proprietorship can act as a landlord, but all property ownership and rental agreements must be handled in the name of the individual owner, not the business as a separate legal entity. Below is a detailed explanation of how this works, organized under five...

Yes, a sole proprietorship can file for bankruptcy, but unlike corporations or partnerships, the process directly involves the individual owner because a sole proprietorship is not a separate legal entity. Below is a structured explanation of how bankruptcy works for...

Yes, contracts are possible for a sole proprietorship. However, since a sole proprietorship is not a separate legal entity, all contracts must be made in the name of the sole proprietor (the individual owner), not in the name of the business as an independent party....

1. Ownership Lies With the Individual The business itself cannot hold property in its own name, as it has no separate legal identity All assets, including land, buildings, equipment, or vehicles, are legally owned by the sole...