Sole Proprietorship

A sole proprietorship is a type of business owned and operated by one person. This individual has complete control over all decisions and keeps all profits but also bears all risks and liabilities. It’s the simplest form of business structure, often chosen for its ease of setup and minimal regulatory requirements. Since the owner and the business are legally the same entity, personal assets can be at risk if the business incurs debt or legal issues. This structure is popular among freelancers, consultants, and small shop owners for its flexibility and direct management.