A sole proprietorship is the simplest form of business structure where one person owns and runs the entire business. There is no legal separation between the owner and the business — you are the business, and the business is you.
The biggest advantage? It is incredibly easy to set up. You just register your business, get the necessary licenses or permits, and you are good to go. No partners, no board of directors, no complex paperwork. You make all the decisions and keep all the profits.
The downside is unlimited liability. Since there is no legal distinction between you and the business, you are personally responsible for all debts and obligations. If the business owes money, creditors can come after your personal assets. Think of a freelance graphic designer or a local shop owner — most of them operate as sole proprietors.