Sole proprietorship
In the United States, an unincorporated business owned by one person, without a separate entity’s liability shield. Business income is generally reported on the owner’s individual tax return; self-employment and other applicable taxes may also apply.
Sole proprietorship in practice
Hypothetical U.S. example: one owner operates an unincorporated repair shop. Business debts and liabilities can become the owner’s personal obligations. A customer filing a lawsuit does not by itself establish liability or determine which assets could be collected.