What is the difference between proprietorship and one person company?
- busterwasmycatLv 71 month ago
a one-person company would be a sole-proprietorship (like mine). Proprietorship simply means ownership, and specifically a private non-corporate ownership in most uses. The owner (or owners) is(are) a real person (real persons). The legal person is a real person or persons. There is no distinct legal entity (person) that is different from the real person that is the owner.
At least, that is how the law functions here.
Basically, there are many ways to own or create a "company", and a proprietorship is simply a form where the person is the company and the company is the person. They are not legally distinct. The company debts and earnings are identical to the person's debts and earnings. If the company goes bankrupt, the person goes bankrupt at the same time. There is no legal wall between the individual and the company.
- Robert JLv 71 month ago
They could be the same thing.
The proprietor is the owner of a (non corporate) business.
If it's a one-person business using the persons name, then the "proprietor" is obvious and does not need mentioning.
If they are using a business name / trading name rather than their own name then in most places any paperwork must also in some way give the owners real name as the proprietor. (Whether they employ others or not).
eg. A notice in a shop or web site would probably give the owners name as the proprietor.
In the UK at least, such as a bank would list it as
Persons name t/a business name
(t/a = Trading as).