A sole proprietorship is the simplest form of business structure. It is owned and operated by one individual, making it easy to set up and manage. However, the owner is personally liable for all business debts and obligations, which can be a significant risk.
Advantages: - Simple to set up and manage - Full control over business decisions - Fewer regulatory requirements
Disadvantages: - Unlimited personal liability - Difficulty in raising capital - Limited growth potential
Ideal For: Small businesses and freelancers who are just starting out and prefer to keep things simple.