1.Individual ownership: This business is exclusively owned by a single person. 

2. Individual management and control: All affairs are managed and controlled by the sole proprietor. 

3. Individual financing: All investment is made by the proprietor. Though, if required he/she has access to loans and debts to procure funds for business. 

4. No separate legal entity: Legally, the proprietor and proprietorship are one and the same business and owner exists together, thus with owner's death, business too dies. 

5. Unlimited liability: The proprietor is liable/responsible for all losses arising from business. In case the business assets are insufficient to pay off liabilities, his/her personal property can be called upon to pay his business debts. 

6. Sole beneficiary: The sole proprietor alone is entitled to all the profits and losses of business. So, he puts his heart and soul to increase his profits. 

7. Easy formation and closure: Sole proprietorship are subjected to minimum legal formalities and regulations both at time of commencing and/or closing. 

8. Limited area of operation: This form of business generally has a limited area of operation due to: limited finance availability limited managerial abilities