What business structure is characterized by a single owner who holds all rights and responsibilities?

A sole proprietorship is a business structure where one individual is the exclusive owner and is responsible for all aspects of the business. This model allows the owner complete control over decision-making, profits, and liabilities. There are no formal requirements to establish a sole proprietorship, making it a straightforward and accessible option for many entrepreneurs.

The owner retains all rights to the business income and is personally liable for any debts or obligations incurred by the business. This structure is often chosen by individuals who wish to run a small business independently, such as freelancers, consultants, or retail shop owners.

In contrast, a corporation involves multiple shareholders and limited liability, meaning the financial responsibility is shared and personal assets are generally protected. A partnership consists of two or more individuals who share profits and responsibilities, which contrasts with the singular ownership of a sole proprietorship. An LLC, or Limited Liability Company, blends elements of both corporations and sole proprietorships, providing liability protection while allowing for flexible management structures and fewer formalities than a corporation.