Glossary · People and paperwork
In short
A business structure where one individual owns and operates the business, personally responsible for all its debts and liabilities.
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.
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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