- assets minus liabilities of an organization. It equals contributed capital plus accumulated earnings.
- form of business organization. See also sole proprietor.
unincorporated business owned by a single person. The individual proprietor has the right to all the profits from the business and also responsibility for all the firm's liabilities. The income of a proprietorship is reported on Schedule C of the owner's Form 1040. If the taxpayer is actively involved in the business, the net income is also subject to self-employment tax.
unincorporated business owned by a single person and sometimes called a proprietorship. The individual proprietor has the right to all the profits from the business and also has responsibility for all the firm's liabilities. Since proprietors are considered selfemployed, they are eligible for Keogh accounts for their retirement funds.
ownership of a business, including income-producing real estate, by an individual, as contrasted with a partnership or corporation.
Example: A local brokerage firm decided that incorporation would be too cumbersome and would bring adverse tax consequences, so the owner retained the business as a proprietorship.
