{"ok":true,"canonical_url":"https://dealroom.so/glossary/sole-proprietor","api_url":"https://dealroom.so/api/public/glossary/sole-proprietor","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"sole-proprietor","term":"Sole proprietor","group":"People and paperwork","definition":"A business structure where one individual owns and operates the business, personally responsible for all its debts and liabilities.","what_it_means":"If you're buying a sole proprietorship, you're buying the individual's business assets, not a separate legal entity. This structure is simpler to set up but offers no personal liability protection. Ensure you understand how the asset purchase agreement handles existing liabilities, as you'll want to avoid inheriting the seller's personal business debts.","url":"https://dealroom.so/glossary/sole-proprietor","official_sources":[],"related":[{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"}],"related_questions":[{"question":"Does my business need to have employees, or can I be a sole proprietor?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-have-employees-or-can-i-be-a-sole-proprietor"},{"question":"What are the specific requirements for business continuity if the seller is the sole proprietor?","url":"https://dealroom.so/sba-7a/questions/what-are-the-specific-requirements-for-business-continuity-if-the-seller-is-the-sole-propr"},{"question":"Does my business legal structure (like LLC or Sole Proprietorship) affect SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-loans/basics/does-my-business-legal-structure-like-llc-or-sole-proprietorship-affect-sba-7-a-loan-eligi"},{"question":"What are the key considerations for a lender when approving a material change in the borrower's business entity structure (e.g., sole proprietorship to LLC) during servicing?","url":"https://dealroom.so/for-lenders/questions/what-are-the-key-considerations-for-a-lender-when-approving-a-material-change-in-the-borro"},{"question":"Can I use an SBA 7(a) loan to purchase business equipment as the sole purpose of the loan?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-business-equipment-as-the-sole-purpose-of-the-loan"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Sole proprietor","url":"https://dealroom.so/glossary/sole-proprietor","source_type":"DealRoom Data"}}