A Sole Proprietorship is a form of business which is owned by an individual person. It is also known as a single trader or just proprietorship. This is a type of business entity in which there is the only single owner who starts a business with an objective to earn a profit. As there is only single owner all the profit and the losses are borne by him only. When it comes to liability the sole proprietor has an unlimited liability that means he is liable to pay the debts and the losses of the company. The sole proprietorship is suitable for that business which is of small size. Investment in these kinds of business is limited. It can be opened by those persons who want to individually run a business on a small size