SOLE PRORIETORSHIP

If a natural person runs a business for his own risk and account, there is a one-man business. In such case, there is no distinction between his business assets and his private assets. This implies that all assets and liabilities belonging to the business form the profits and expenses of the entrepreneur at the same time. The entrepreneur is liable in person. This means that a creditor of the business has the right to claim the personal assets of the entrepreneur (and possibly those of his/her spouse), while the private creditors also can claim the assets of the business.