What type of business is owned by only one person?

A business that is owned by only one person is known as a sole proprietorship. This structure is the simplest and most common form of business organization. In a sole proprietorship, the owner has full control over the business and is responsible for all its profits, losses, and liabilities. This means that they can make decisions quickly and independently without needing consensus from partners or a board of directors, as in other business entities.

The sole proprietorship also benefits from straightforward taxation, as business income is reported directly on the owner's personal tax return. This can simplify financial management for the owner. Additionally, the establishment of a sole proprietorship typically involves fewer formalities and lower startup costs compared to other business forms, making it an accessible choice for individual entrepreneurs.

In contrast, partnerships involve two or more individuals sharing ownership, corporations have a more complex structure with shareholders, and franchises are business models where individuals can buy into a larger company system but do not solely own the business.