A sole proprietorship is a type of business that is owned and operated by a single individual. It is the simplest and most common form of business structure, and is often used by small businesses or self-employed individuals. In a sole proprietorship, the individual owner has complete control over the business and is personally responsible for its debts and liabilities. The business and the owner are considered to be the same legal entity, and the owner reports the business's profits and losses on their personal tax return.
