Which one of the following statements about sole proprietorships is correct?

$1.$

The profit of the owner of a sole proprietorship is taxed twice.

$2.$

The owner of a sole proprietorship shares profits as established by the partnership.

$3.$

The owner of a sole proprietorship may be forced to sell personal assets to pay company debts.

$4.$

The owner of a sole proprietorship has limited liability, which guarantees that they cannot lose more than they invested.