---
title: Sole Proprietorship
description: A Sole Proprietorship is a business operated by one individual in their own name and on their own account. In Germany, this corresponds to an Einzelunternehmen. It is not a separate legal entity from its owner, which means the owner manages the business directly and is personally liable for its obligations, including with private assets.
---

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# Sole Proprietorship

A **Sole Proprietorship** is a business operated by one individual in their own name and on their own account. In Germany, this corresponds to an Einzelunternehmen. It is not a separate legal entity from its owner, which means the owner manages the business directly and is personally liable for its obligations, including with private assets.

A Sole Proprietorship can usually be established without minimum share capital; commercial activities generally require notification to the local trade authority, while liberal professional activities are treated separately for tax purposes. Business income is usually taxed as the owner’s personal income. Depending on the type and size of the business, additional taxes such as trade tax and value added tax may also apply. 

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