What do you call a business that is owned by one individual?

A business that is owned by one individual is referred to as a sole proprietorship. This structure is the simplest form of business ownership, wherein the owner retains full control and is personally liable for all debts and obligations incurred by the business. In a sole proprietorship, the individual and the business are legally considered the same entity, which means that any income earned is reported directly on the owner's personal tax return.

This model is beneficial for those who want complete autonomy over their business decisions and who prefer a straightforward setup without the complexities associated with larger business structures. The lack of formal incorporation requirements and lower regulatory burdens are additional reasons why many entrepreneurs choose to establish their businesses as sole proprietorships.