With a sole proprietorship, personal liability for debt and negligence is what?

In a sole proprietorship, personal liability for debt and negligence is considered unlimited. This means that the owner is personally responsible for all debts and legal obligations incurred by the business. Because there is no legal distinction between the owner and the business itself, creditors can pursue the owner's personal assets—such as savings accounts, real estate, and other personal property—to satisfy business debts. This characteristic is a significant aspect of operating as a sole proprietorship, and it poses a considerable risk to the owner's personal financial security.

This contrasts with other business structures like corporations or limited liability companies (LLCs), where personal liabilities are typically limited to the investment in the business, thereby protecting personal assets from being used to cover business debts.