Glossary · People and paperwork
In short
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.
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.
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
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