Sole Proprietorship

A Sole Proprietorship is the simplest form of business structure, where a single individual owns and operates the entire business. In this setup, the owner has full control over decision-making and directly receives all profits. However, there is no distinction between the business and the owner, meaning the owner is personally liable for all the business’s debts and obligations. This structure is easy to set up with minimal regulatory requirements, making it ideal for small businesses and startups. Sole proprietorships are popular for their simplicity and direct control, though they come with the risk of unlimited personal liability.

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