A sole proprietorship is a simple, unincorporated business owned and run by a single individual. The owner and the business are not legally distinct, so the owner personally bears the profits, losses, and debts of the business. It is usually the easiest and least expensive business form to start, with the owner paying personal income tax on business profits and staying responsible for all obligations. Key ideas

• Ownership: One person owns the business; there is no separate legal entity.
• Liability: The owner has unlimited personal liability for business debts and obligations.
• Taxes: Profits are taxed as the owner's personal income, not at a separate business tax level.
• Startup and compliance: Typically quick to establish; may require local licenses, business permits, and a DBA/doing-business-as registration in some jurisdictions.
• Growth options: Easy to start, but many ventures convert to a separate legal entity (e.g., LLC or corporation) as they scale to limit liability or raise capital.

Common considerations

• Liability exposure: Personal assets (home, savings) can be at risk if the business incurs debt or legal judgments.
• Funding: Funding usually comes from the owner’s resources or loans; there are generally fewer formalities for raising capital.
• Continuity: The business often ends if the owner dies or stops running it; continuity plans may require converting to a different business structure.

If you’d like, specify your country or state, and I can summarize the exact steps, tax implications, and liability considerations for forming a sole proprietorship in that location.