Sole Proprietorship Definition

Probably the best way to look at a sole proprietorship is to think of the business and the owner of the business as one and the same. There are literally millions of sole proprietorship examples around all of us. For example, for Juliet Jones Lawn Cutters, the sole proprietorship, Juliet Jones and her lawn cutting business are one and the same. If Ms. Jones runs up steep bills buying a truck and grass cutting equipment, she is responsible for all of those debts. If the lawn mower gets away from her and mows down the neighbor’s rose garden, she could be sued for that or at least responsible for buying the new rose plants for the neighbor.

Ms. Jones could create the sole proprietorship lawn cutting service and buy liability insurance to protect her and her company in case she causes some damage while out cutting lawns.

She needs to speak with a lawyer about all of her options before she starts the business.

Comments are closed.