What is a business owned by one person called?

A business owned by one person is referred to as a sole proprietorship. This type of business structure is the simplest form of ownership and is characterized by the fact that the owner has complete control over the business operations and is entitled to all profits generated. Sole proprietorships are easy to establish and maintain, making them a popular choice for individuals starting their own businesses. The owner is personally responsible for all debts and liabilities incurred by the business, which means that there is no legal distinction between the owner and the business entity regarding financial responsibility.

In contrast, a partnership involves two or more individuals sharing ownership and responsibilities. A corporation is a more complex business structure that is legally separate from its owners, offering limited liability protection to its shareholders. An LLC, or Limited Liability Company, combines elements of both partnerships and corporations, providing limited liability while allowing for more flexible management structures. Sole proprietorships, however, remain distinct in their simplicity and direct control by a single owner.