A sole proprietorship also known as a sole trader, or simply proprietorship is a type of

business entity which is owned and run by one individual and where there is no legal distinction
between the owner and the business. All profits and all losses accrue to the owner (subject to
taxation). All assets of the business are owned by the proprietor and all debts of the business are
their debts and they must pay them from their personal resources. This means that the owner has
unlimited liability. It is a "sole" proprietorship in the sense that the owner has no partners
(partnership).
A sole proprietor may do business with a trade name other than his or her legal name. This also
allows the proprietor to open a business account with banking institutions.
Advantages of Sole Proprietorship
As a sole proprietor, you have absolute freedom in decision
making.
All profits will be your personal property.
No reports of accounts are required.
You only need to pay personal income tax and not business tax.
Limitations of sole proprietorship
You are responsible for the debts and risks of the business.
Legally, there is no difference between your personal and your
business property. Your liabilities are unlimited, whicn means risks and
failures in the business will involve your personal property