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Sole proprietorship vs. self-employed

By Justin Parker - Feb. 20, 2023

The difference between a sole proprietorship and self-employed is that a sole proprietorship refers to someone who owns a business, while self-employed refers to someone who works for him or herself.

A sole proprietorship refers to a specific business structure in which one person owns the entity, and that entity is unincorporated.

Sole proprietors are responsible and personally liable for any business obligations, like debts, or even legal issues, like lawsuits against the sole proprietorship. Sole proprietors offer specific products or services.

The term self-employed refers to an individual who works for themself. They are also known as freelancers and independent contractors. These workers are normally not employed by just one company or individual and generally do not receive employee benefits or an annual salary.

Self-employment can take many different forms, such as freelance writers, graphic designers, or other creative professionals, as well as jobs like gig-workers

Sole proprietorship vs. self-employed

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