A sole proprietorship is a type of business structure where an individual owns and operates an unincorporated business. Here are some key features of a sole proprietorship:

• Ownership: The business is owned and run by one individual, with no distinction between the business and the owner.

• Liability: The owner of a sole proprietorship is personally liable for all debts, losses, and liabilities of the business.

• Taxes: Any profit made by the business is treated as the owners personal income and is reported on their individual income tax return.

• Ease of setup: A sole proprietorship is easy to establish and maintain, with minimal legal costs and paperwork.

• Lack of government regulation: There is no separate legal entity created for a sole proprietorship, making it easy to establish and dismantle.

Sole proprietorships are best suited for low-risk businesses and owners who want to test their business idea before forming a more formal business. They are also popular among small business owners, individual self-contractors, and consultants. However, it can be hard to raise money as a sole proprietorship because the owner cannot sell stock, and banks are hesitant to lend to them.