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Normal companions in a partnership (other than a restricted liability partnership), plus anyone who personally owns and operates a business without making a separate legal entity, are personally liable for the debts and obligations of the enterprise.
Sole proprietorship: A sole proprietorship , also referred to as a sole dealer, is owned by one individual and operates for his or her benefit. The proprietor operates the enterprise alone and should hire workers A sole proprietor has unlimited legal responsibility for all obligations incurred by the business, whether from working prices or judgments towards the business. All property of the business belong to a sole proprietor, together with, for example, computer infrastructure, any stock , manufacturing tools, or retail fixtures , as well as any real property owned by the sole proprietor.