A Sole Proprietorship is the business form most often unknowingly and unwisely used by the vast majority of small businesses. The owner is fully responsible for all assets, all income, all taxes, all self employment taxes, social security taxes, etc. etc. Further, the owner is completely liable and responsible for any legal liability arising out of the business, including any type of negligence, intentional acts, wrongful death, and again, etc. etc. There is no entity or business protection. Sole proprietors are laid bare to the world, and sometimes, it’s a mean and vicious world.