In 2025, Guidant Financial reports that 27% of entrepreneurs have started entirely new independent businesses. This data suggests that over a quarter of business owners built something from scratch. Additionally, this number shows how common it is to pursue a passion without waiting for funding and a formal setup. Still, starting alone raises practical questions—what examples of sole proprietorship fit your career, and how do you make it work?
As such, this guide will discuss sole proprietorship, how it works, its common examples, benefits, and when it might not be enough for you.
What Is a Sole Proprietorship? Definition and Real-World Examples
A sole proprietorship is a business run by one person. However, it isn’t a separate legal entity, so you and the business are the same in the eyes of the law. This structure works best if you want to start quickly, keep costs low, and manage the business on your own.
Some successful real-world examples of sole proprietorship include:
- Sears, Roebuck and Co. – This company initially started as a sole proprietorship before becoming one of the largest retailers in the U.S. Richard Warren Sears, its co-founder, was selling jewelry and watches through mail orders during this time.
- A&W – J. Willard Marriott’s love for root beer started as a sole proprietorship.
- Kate’s Real Food – Kate Schade started this venture as a sole proprietorship. At the time, she was selling bars in a small town in Idaho.
How Sole Proprietorships Work
Because there’s no legal line between you and the business, you are responsible for all business debts, lawsuits, and contracts in any examples of sole proprietorship.
Additionally, there’s no separate business tax return. Instead, you will report your income and expenses on your personal tax filing, which is called pass-through taxation. Although the business doesn’t pay corporate taxes, you will still pay income and self-employment taxes. You may also need a sales-tax permit, a health permit (for food), or a professional license.
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Common Career Examples of Sole Proprietorships
A sole proprietorship structure suits careers where you can work with multiple clients, manage your own time, and set rates based on the types of services.
This section highlights real examples of sole proprietorship so you can see how different types of professions fit into this structure.
Freelance Writing
Freelance writing means getting paid to write for clients without official employment. You work as an independent contractor and take on projects like blog posts, product descriptions, or newsletters. It’s a sole proprietorship because you own the project end-to-end.
For example, if you’ve written essays or blog posts before, you can offer those as samples and pitch your services to small companies looking for someone to write weekly website content. Then, you send an invoice, deliver the work, and get paid directly.
To find clients, explore platforms such as:
Freelance Web Designing
Web design involves creating functional and easy-to-navigate websites. This profession is considered a sole proprietorship because you architect sites and bill clients directly. Some projects also include coding basic site features using HTML, CSS, or tools like WordPress.
If you’ve built your own site or helped a friend update theirs, you can pitch those samples to clients. You might charge a local business a flat fee to design a homepage, add their logo, and set up contact forms.
To source web design gigs, consider Behance/Dribbble portfolios, local business referrals, and LinkedIn networking.
Personal Training
Personal training means helping people reach their fitness goals through custom workout plans, form checks, and regular sessions. As a sole proprietor, you train clients at home, at their location, or in a rented space like a gym. Many trainers also offer online sessions through video calls.
For instance, your personal training services can offer a package of weekly sessions to new clients in your area. You set your rate, schedule the sessions, and collect payment directly.
To sign up clients, try platforms like Trainerize, Gymcatch, and promote on social media.
Freelance Tutoring
Tutoring means helping students improve in a specific subject through one-on-one or small group sessions. You can offer sessions at your home, at the student’s home, or online through video calls. This job is considered a sole proprietorship because you develop lesson content and handle all scheduling and billing yourself.
Suppose you’re good at algebra and have helped others understand it before. You can become a sole proprietor by offering weekly sessions to high school students. You’ll outline your rate, meet online or in person, and receive direct payments based on your agreement.
To connect with learners, look at platforms like Wyzant, Preply, Chegg Tutors, and Tutor.com.
Consulting (Various Fields)
Consulting offers advice to help businesses solve problems or improve results. This work is common in areas like marketing, finance, hiring, or operations. Many consultants step in on a short-term basis to review a situation, give feedback, and suggest better ways to do business management.
Consulting is also considered a sole proprietorship because you deliver expert analysis, propose solutions, and invoice businesses under your personal name.
Say you’ve run successful paid ads and know how to bookkeep and analyze data. You can offer these services to multiple local small and medium enterprises (SMEs).
To find business engagements, explore channels like Clarity.fm, LinkedIn outreach, and Upwork.
Photography
Photography as a sole proprietorship means offering paid photo services without joining an agency or studio. You manage your own shoots, clients, edits, and bookings, and work on areas like events and portraits.
Let’s say you already take sharp photos with a DSLR and have edited a few for friends or social media. You can offer these services based on your skills, time, and difficulty of the shoot.
To get bookings, create a profile on Thumbtack and GigSalad, or build your Instagram portfolio.
Online Selling
As sole proprietors, online sellers earn by listing and shipping products at home. You can sell handmade items, vintage goods, or use dropshipping to ship directly from suppliers.
Perhaps you make candles and give them as gifts. When you establish this venture in a sole proprietorship, you can create five to ten units, take clear photos, and list them on websites like eBay and Etsy.
To become an online seller, use Etsy, eBay, Shopify, Big Cartel, or Facebook Marketplace.
Graphic Designing
Graphic design involves creating visuals that businesses use for branding, marketing, or websites. These materials include logos, brochures, ads, or packaging. As sole proprietors, most designers work freelance and take on one project at a time.
For example, if you’ve made flyers or social media posts before, you can offer the same services to a small business. You agree on the style, send a few drafts, and charge a flat fee once it’s done.
To pitch projects, use 99designs, DesignCrowd, Dribbble, or Fiverr.
Event Planning
When you love organizing events like weddings, fundraisers, or business meetings, you can establish a sole proprietorship for event planning. You will coordinate with multiple clients and issue invoices for every event you execute.
You don’t need a license to start, but you should know how to manage timelines, budgets, and communication. Many planners build a list of reliable vendors for catering, flowers, and rentals to help the arrangement move faster.
To book clients, try platforms such as The Knot, WeddingWire, and Eventbrite.
House Cleaning Services
House cleaning involves providing scheduled cleaning for homes or small offices on a per-visit or hourly basis. As a sole proprietor, you manage every aspect of the business yourself: bringing your own supplies, setting your availability, and handling payments directly with clients.
To start finding clients, use platforms like TaskRabbit and Handy or post targeted ads in the local services section of Craigslist.
Handyman Services
Handyman work includes basic home repairs, installations, and general maintenance. Operating as a sole proprietor means you’re responsible for booking jobs, providing your own tools, setting your prices, and issuing invoices. To attract clients, consider signing up on Thumbtack, TaskRabbit, or Angi, where homeowners frequently search for local help.
Pet Sitting & Dog Walking
Pet sitting and dog walking involve caring for pets in the client’s home or providing walks while owners are at work or traveling. As a sole proprietor, you coordinate directly with pet owners.
To find pet care gigs, list your services on Rover, Wag!, or Care.com, where pet owners regularly seek reliable help.
Digital Content Creation
Digital content creation involves producing videos, podcasts, or written posts for platforms like YouTube, TikTok, Instagram, or blogs. As a sole proprietor, you’re a one-man agency that creates content and builds an online presence.
You can earn through ad revenue, sponsorships, or affiliate links. Some creators also sell digital products or offer paid memberships.
For example, if you enjoy explaining tech tips, you can record short tutorials on your phone and post them weekly to YouTube. Once your channel grows, you apply for monetization, earn from ads, and pitch your services to brands.
Catering
Caterers prepare and serve food for special events like weddings and private parties. In a sole proprietorship structure, you handle the menu, prep, delivery, and sometimes on-site setup. Some caterers also offer staff to serve or manage the event.
Most start small from a home kitchen or shared commercial space. Also, you’ll need to follow local food safety rules, get permits, and price your services by portion or package.
To find catering opportunities, consider platforms like ezCater and CaterCow.
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Benefits of Starting a Sole Proprietorship
Most first-time entrepreneurs choose one to two examples of sole proprietorship due to the following advantages:
Low Start-Up Costs on Sole Proprietorship
Sole proprietorships are the simplest business structure to start. You don’t need to file formation papers or create legal agreements. In many states, you can begin as soon as you sell a product or service under your own name.
At the same time, this structure typically has fewer fees. You can also avoid registration costs that come with forming an LLC or corporation, making it easier to establish with a limited budget.
Total Control
With a sole proprietorship, you don’t need to ask a partner, follow board votes, or check with investors. You choose how the business runs, who you work with, and what you offer. This autonomy helps you act fast whenever necessary, such as changing prices, switching services, and adjusting schedules.
Direct Tax Benefits
Sole proprietors report business income and expenses on their personal tax return using Schedule C. This setup saves time and cuts down on paperwork. As a result, you track income, record expenses, and file it all together with your regular tax return, giving you direct access to tax benefits without the complexity of a formal entity.
Ideal for Part-Time or Passion Projects
You can operate a side business without committing to fixed hours or registering a formal structure. As a sole proprietor, you’re free to set your own schedule, work around your primary job, and start earning independently through your passion projects.
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When a Sole Proprietorship Might Not Be Enough
Any examples of sole proprietorship have their fair share of limits. As your business grows or takes on more risk, you may need more protection or formal structure.
Liability Risks
Because you are the business in a sole proprietorship, you’re personally liable for legal disputes. These affairs may include unpaid debts, lawsuits, or damage caused by your services or products.
Your personal assets, like your bank account, car, or home, could be used to cover business losses or legal costs. This risk is typically higher in fields like catering, event planning, and personal training.
Scaling Challenges
A sole proprietorship can hold back growth as the business expands. You can’t sell shares or bring in investors without changing your structure. Most funding sources also prefer registered businesses like LLCs or corporations.
These limitations can make it difficult to get business loans, build credit, or take on large contracts. Moreover, some clients or partners may even see the business as too informal for long-term deals.
Consideration for LLC or Corporation
As your sole proprietorship expands, your taxes can get harder to manage. All business income passes through to your personal return, which can push you into a higher tax bracket. You may also miss out on deductions or tax breaks that are only available to LLCs or corporations.
On the other hand, it can be confusing when you don’t separate your assets and liabilities. If you don’t have dedicated accounts, expense tracking, or proving deductions becomes more difficult during tax season.
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Final Tips for Starting Your Sole Proprietorship
Before you launch, here are a few practical steps to help set up your sole proprietorship:
Choose a Business Name for Your Sole Proprietorship
Pick a clear, searchable name that reflects your service. If you’re using a name other than your legal one, you may need to file a DBA (Doing Business As) with your state or county.
Check Local Registration Requirements
Some cities or states require sole proprietors to register, even without employees. Based on your industry and location, verify if you need a business license, sales permit, or zoning clearance.
Open a Dedicated Sole Proprietorship Business Bank Account
Open a dedicated business account to keep your business finances separate, simplify expense tracking, and protect your assets.
Track All Income and Expenses on Your Sole Proprietorship
Log payments, receipts, and mileage using spreadsheets or accounting tools. These tools will help you stay organized and claim all eligible deductions.
Establish an Online Presence
Create a simple website or profile on relevant platforms like LinkedIn, Google Business, or industry-specific marketplaces. These channels will help you build credibility and ensure you’re accessible to clients.
Conclusion
Starting an independent business gives you room to test your idea and build at your own pace. Because you have plenty of real-world examples of sole proprietorship as a reference, it’s easier to see what works and apply it to your own setup.
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