For a business to classify as a proprietorship, how many owners must there be?

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A proprietorship, specifically referred to as a sole proprietorship, is defined by its ownership structure, which is limited to one individual. This means that a sole proprietorship is a business owned and operated by a single person who is entitled to all profits and is responsible for all liabilities. The simplicity of this structure allows for straightforward tax reporting, as the income is typically reported on the owner's personal tax return.

In contrast, other business entities such as partnerships and corporations have different ownership requirements, necessitating more than one owner or stockholders. Therefore, recognizing that a sole proprietorship is characterized by its single ownership is essential for accurately understanding its classification in the realm of business entities.

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