What is a sole proprietorship?

Last updated: 3 August 2016.

A sole proprietorship is a self-employed business which is run by one owner who is personally liable for the business.

Self-employment

When we consider whether your sole proprietorship is regarded as self-employment, we look at

  • type and scope of business activity
  • how much time you spend running the business
  • contributed manpower
  • volume of business income

Activities that are considered to be single events or a hobby are not defined as business activities.