What is the name of a business owned and operated by one person?

A business owned and operated by one person is a sole proprietorship.

A sole proprietorship is the simplest common business structure. The owner and the business are not separate legal entities, so the proprietor generally receives the profits directly and is personally responsible for business debts and legal obligations. The owner can still hire employees, use a trade name, and operate a substantial enterprise.

Its main attraction is simplicity: in many jurisdictions, an individual can begin operating without filing the formation documents required for a corporation or limited liability company. Income is commonly reported on the owner’s personal tax return, although exact tax rules depend on the jurisdiction.

The key trade-off is unlimited personal liability. A corporation or limited liability company generally creates a legal separation between the business and its owners, while a partnership has two or more owners. A sole proprietorship may have employees, but it has only one owner.