Can a sole proprietorship be purchased by a corporation and still remain it's own entity?

Question

Can a sole proprietorship be purchased by a corporation and still remain it's own entity?

Answer 1

No.

Once purchased it is no longer a sole proprietorship.  It could become a subsidiary of the purchasing corporation and retain it's separate identity or be absorbed into the purchasing corporation.

Hope this helps

Jerry-the-bookkeeper

Answer 2

The technical answer to your question is yes, since the corporation could make the purchased company a subsidiary which is a separate entity.  But I don't think that's what you mean.

There are holding companies that purchase companies (operating subsidiaries) that are basically set up as separate and distinct companies.  But at the end of the day, if your parent company wants you to do something, you don't really have a choice.