Most businesses start small, sometimes with one laptop, one skill, and one client. That’s a sole proprietorship.
Many new founders don’t realize they’re already running one, or that it exposes their personal assets.
This guide shares 15+ real examples of sole proprietorships, from freelancers to food vendors, explaining how they work and when it makes sense to move up to an LLC.
We’ll cover common industries, famous examples, and key lessons you can apply right away.
What Is a Sole Proprietorship?
A sole proprietorship is the simplest form of business ownership, one person owns and runs the entire operation. There’s no legal separation between the owner and the business, meaning profits (and debts) are entirely yours.
- Easy to start: In most states, you don’t need to register or file formation paperwork.
- Tax simplicity: You report business income on your personal tax return using your Social Security Number (SSN).
- Main drawback: Unlimited personal liability — if your business is sued, your personal assets are at risk.
Why Sole Proprietorships Are So Common
Sole proprietorships dominate the small business landscape because they’re fast, flexible, and nearly effortless to start.
You can turn your skills into income the same day you land your first client — no paperwork, no registration delays.
- Instant setup: No formation forms or state filings required.
- Low startup costs: You can start with just a laptop, a toolkit, or a service skill.
- Full control: Every decision, dollar, and direction is yours alone.
- Popular among: Freelancers, side hustlers, and early-stage entrepreneurs testing an idea.
- Main risks: No liability protection, harder access to funding, and limited scalability without formal registration.
20 Sole Proprietorship Examples
Sole proprietorships exist in nearly every industry — from freelance creators to local service providers. Here are 20 sole proprietorship examples (with insights) to show how one-person businesses operate successfully.
- Freelance Writer – Low startup cost, high flexibility, and strong online demand.
- Graphic Designer – Creative service-based business with minimal liability.
- Photographer – Moderate investment; insurance recommended for client shoots.
- Web Developer / IT Consultant – Tech-based, scalable, and perfect for remote work.
- Social Media Manager – Builds brands online; easy to start from home.
- Tutor – In-person or online teaching with steady income potential.
- Business Consultant – Advises startups or small companies; requires credibility and networking.
- Accountant / Bookkeeper – Handles client finances; moderate liability, steady recurring clients.
- Personal Trainer – High-trust service; must carry liability insurance.
- Yoga or Fitness Instructor – Builds community-based income through classes or retreats.
- Nutritionist / Wellness Coach – Health-focused; scalable through digital programs.
- Housekeeper / Cleaner – Predictable, recurring client base.
- Landscaper / Gardener – Outdoor physical work; insurance essential.
- Plumber / Electrician – Licensed trade; often starts solo, later expands to LLC.
- Baker / Caterer – Great for skilled cooks; requires permits and food safety compliance.
- Food Truck Owner – Low overhead compared to restaurants; flexible locations.
- Etsy or Shopify Seller – E-commerce model ideal for creatives or dropshippers.
- Event Planner – Organizes weddings and corporate events; requires strong coordination and coverage.
- Virtual Assistant – Provides admin support remotely to entrepreneurs.
- Content Creator / Influencer – Monetizes social platforms; easy to start, scales fast with an LLC later.
Pro Tip: Start simple — use your own name or a DBA (“doing business as”) to brand your business legally.
When to Move from Sole Proprietorship to LLC
A sole proprietorship is perfect for testing an idea — but as soon as your revenue, liability, or client size grows, it’s time to upgrade.
- Rising risk: The moment you start handling larger projects or signing contracts, your personal assets become exposed.
- Business credibility: Many clients, payment platforms, and banks prefer working with registered companies.
- Financial flexibility: An LLC lets you open a U.S. business bank account, access Stripe or PayPal Business, and file taxes more efficiently.
- Tax and legal protection: Unlike a sole proprietorship, an LLC separates your personal and business liabilities — protecting your assets if anything goes wrong.
💡 Important: Non-U.S. residents cannot operate a U.S. sole proprietorship because it requires a Social Security Number and U.S. tax residency. For global entrepreneurs, a U.S. LLC is the simplest and most accessible structure to legally own and operate a business from abroad.
Final Thoughts
Every successful business starts small — often as a one-person operation. A sole proprietorship is the easiest way to begin, but it comes with limits.
Think of it as your starting point, not your final structure. Once your income, clients, or liability grow, an LLC becomes your safety net — offering protection, credibility, and long-term scalability.
Start where you are, learn the ropes, and when it’s time to level up, formalize what you’ve built so it’s protected for the future.
Need Help Setting up your US Company?
StartFleet helps you with your US Company formation. Apart from helping you to register a US company we offer a lot more:
- LLC and Corporation formation in Wyoming, Delaware, Florida and all other US States
- Over $500,000 perks from our partners
- US Business Bank Accounts Opening
- Expedited EIN Application
- Stripe/PayPal application consultation
- Shopify and Amazon FBA setup consultation
- Customized Website Policies for your website
