Glossary · People and paperwork
Proprietor
In short
An individual who owns and operates a business by themselves, without a separate legal entity. They are personally responsible for all business debts and liabilities.
What it means in a deal
If you're buying a sole proprietorship, you're buying directly from an individual, not a corporation or LLC. This can simplify some legal aspects but means the seller's personal finances and liabilities are directly tied to the business. Ensure clear asset transfer and liability assumption.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Proprietor
- Does my business need to have employees, or can I be a sole proprietor?
- What are the specific requirements for business continuity if the seller is the sole proprietor?
- Does my business legal structure (like LLC or Sole Proprietorship) affect SBA 7(a) loan eligibility?
- What are the key considerations for a lender when approving a material change in the borrower's business entity structure (e.g., sole proprietorship to LLC) during servicing?
Defined by CapBench 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.
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