What is a business owned and operated by one individual called?

A business owned and operated by one individual is known as a sole proprietorship. This type of business structure is characterized by its simplicity, as it does not require formal registration and allows the owner to retain complete control over the operations. The owner is personally responsible for all debts and obligations incurred by the business, meaning if the business fails, their personal assets may be at risk. This setup is often favored by small business owners and freelancers due to its straightforward nature and ease of management.

In contrast, partnerships involve two or more individuals sharing ownership and responsibilities, corporations are more complex entities that are legally distinct from their owners and offer limited liability, and limited liability companies (LLCs) combine elements of partnerships and corporations while providing liability protection for its owners.