the sole proprietor is responsible to liabilities such as general upkeep and maintenance of equipment. Such as if you are the owner of a lawn care service, and you have 3 people contracted to you to do jobs and you pay them a commission out of the job. If you have a slow week and don't have any jobs. you are liable to pay your employees for the time spent sitting around as well you are liable out of pocket for any maintenance/upkeep of your equipment. I hope this helps!