What liability does the owner of a sole company have?

The owner of a sole proprietorship has unlimited personal liability for the debts and obligations of the business. This means that if the business incurs debts or is sued, the owner's personal assets, such as savings and property, can be at risk to satisfy those obligations. Unlike corporations or limited liability companies, a sole proprietorship does not provide a legal distinction between personal and business liabilities. Consequently, owners should consider the risks involved and may want to explore other business structures for liability protection.