A sole proprietorship is formed without any formality,is not a separate taxable entity,is dissolved upon death of the owner,and has unlimited liability for the owner.

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A sole proprietorship is formed without any formalities, meaning that it does not require registration with the state government or any other formal paperwork. It is not a separate taxable entity, meaning that the business owner reports the business's income and expenses on their personal tax return. It dissolves upon the death of the owner, as it is not a separate legal entity. Finally, a sole proprietorship has unlimited liability, meaning that the owner is personally responsible for all debts and obligations of the business.

A Sole Proprietorship Is Formed Without Any Formality,is Not a Separate