Which organizational structure is defined as a business owned by an individual with no legal entity apart from it?

A sole proprietorship is defined as a business owned and operated by a single individual who is personally responsible for all aspects of the business. This structure does not establish a legal entity separate from the owner. Therefore, all income and liabilities of the business are treated as the personal income and personal liabilities of the owner, meaning they are personally accountable for any debts or obligations incurred by the business.

In contrast, a corporation is a distinct legal entity separate from its owners, providing limited liability protection. A partnership involves two or more individuals sharing ownership and responsibilities, while a limited liability company (LLC) combines characteristics of both corporations and partnerships, offering liability protection to its owners and a flexible management structure. Understanding these distinctions can help clarify the advantages and downsides of each type of business organization.