If the owner of a sole proprietorship retires or dies, the owner's heirs may take over a profitable business and either sell it or continue to operate it.

Question

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Since a sole proprietorship is not a separate legal entity from the owner, the business and its assets become part of the owner's estate upon retirement or death. The heirs can then take over and continue to operate the business or sell it, depending on their preferences.

If the Owner of a Sole Proprietorship Retires or Dies