The losses suffered by a sole proprietor are not limited to the amount invested. A sole proprietor is personally responsible for all the debts and losses incurred by the business. This means that if the business incurs large losses or debts, the owner's personal assets can be used to cover those losses, even if it means selling personal property or assets. As a result, the sole proprietorship business structure carries a higher degree of risk and personal liability than other types of business structures, such as corporations or limited liability companies (LLCs).