What is individual proprietorship?

Individual proprietorship, also known as sole proprietorship, is a type of business structure where a single individual owns and operates the business. This form of ownership allows the proprietor to have complete control over decision-making and retains all profits, but it also means they are personally liable for all debts and obligations of the business. It is the simplest and most common form of business organization, often favored for its ease of setup and minimal regulatory requirements. However, the owner's personal assets are at risk if the business incurs liabilities.