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Sole proprietorship

A sole proprietorship essentially means that you are the business. You and your school operate as one entity. You are the sole owner (hence, the name sole proprietorship). The sole proprietorship is the simplest business form of operating your school.

The sole proprietorship is a popular and frequently used form of business organization. When your school is organized as a sole proprietorship, the business entity and your other affairs (personal and business) are merged together. As the proprietor, you own and control the business. From the standpoint of nearly all legal rights and responsibilities, your sole proprietorship business and you, as the proprietor, are considered to be one and the same.

When a business is owned and operated by a wife and husband, it is often not clear whether the operation is a sole proprietorship or a partnership. The distinction between a sole proprietorship and a partnership can be very important. If you have a sole proprietorship owned and operated by you and your spouse, ask your attorney to identify clearly the legal implications of the linkage between your personal and business affairs. Your attorney also can describe actions you can take to ensure that you have whatever the highest level of liability protection possible in your circumstances.