{"ok":true,"canonical_url":"https://dealroom.so/glossary/sole-proprietorship","api_url":"https://dealroom.so/api/public/glossary/sole-proprietorship","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-proprietorship","term":"Sole Proprietorship","group":"People and paperwork","definition":"A business owned and run by one individual where there is no legal distinction between the owner and the business itself. The owner is personally liable for all business debts.","what_it_means":"If you're buying a sole proprietorship, you're usually acquiring its assets, not the entity itself, due to the inherent personal liability. Ensure a clear asset purchase agreement and understand the implications for transferring contracts, licenses, and customer relationships.","url":"https://dealroom.so/glossary/sole-proprietorship","official_sources":[],"related":[{"slug":"sole-proprietor","term":"Sole proprietor","url":"https://dealroom.so/glossary/sole-proprietor"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"}],"related_questions":[{"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":"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":"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 Proprietorship","url":"https://dealroom.so/glossary/sole-proprietorship","source_type":"DealRoom Data"}}