Glossary · People and paperwork
In short
An individual who owns and operates a business by themselves, without a separate legal entity. They are personally responsible for all business debts and liabilities.
If you're buying a sole proprietorship, you're buying directly from an individual, not a corporation or LLC. This can simplify some legal aspects but means the seller's personal finances and liabilities are directly tied to the business. Ensure clear asset transfer and liability assumption.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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