A sole proprietor is an individual who owns and operates a business on their own. This type of business structure is the simplest form of ownership, where the owner is responsible for all aspects of the business, including profits, losses, and liabilities. Sole proprietors often have complete control over their operations and decision-making. In a sole proprietorship, there is no legal distinction between the owner and the business. This means that the owner is personally liable for any debts or legal issues that arise. Many small businesses, such as freelancers, consultants, and local shops, often operate as sole proprietors due to the ease of setup and minimal regulatory requirements.