If you practice real estate as a sole proprietor, which statement is true?

In the context of practicing real estate as a sole proprietor, the statement that you’re an independent contractor is true. A sole proprietor operates their real estate business independently, meaning they are responsible for managing all aspects of the business and keeping all profits. Independent contractors typically work on a commission basis, without earning a salary like an employee. They have the freedom to determine their own work schedule and are generally responsible for their own business expenses, which aligns with the characteristics of a sole proprietorship.

The other options do not accurately reflect the nature of a sole proprietorship. For instance, being on a salary would imply a traditional employee-employer relationship, which does not apply in a sole proprietor setting. Additionally, while a sole proprietor has to handle their own business liability, they can indeed be held personally liable for any actions taken in their business. Lastly, having a partner contradicts the definition of a sole proprietorship, as this type of business structure is defined by its singular ownership.