Full Video Transcript
Sole proprietorships are basic one person businesses, and generally not registered with the state like corporations and limited liability companies. The reality is sole proprietorships are so simple many people have one and don't even know it. A person who freelances, works jobs on a contract basis, earns only commission, or works as an independent contractor is automatically a sole proprietor. It is important to understand sole proprietors are personally liable for any and all business debts and obligations. Creditors are able to come after personal belongings when trying to collect on a debt.