What defines a business owned by only one person?

A business owned by only one person is defined as a Sole Trader. This type of business structure is characterized by its simplicity and complete control by the owner, who is responsible for all aspects of the business. The Sole Trader has the ability to make decisions independently, and they keep all profits after tax. This structure is common among small businesses and individual entrepreneurs, providing an easy pathway for individuals to start and operate their own ventures.

In contrast, a partnership involves two or more individuals who share ownership and responsibilities for the business. A corporation is a more complex legal entity that is separate from its owners, providing limited liability protection but requiring more regulatory compliance. A franchise involves agreements to operate a business under the brand and business model of another company, which is different from sole ownership. Thus, Sole Trader is the most accurate choice for defining a business owned by only one individual.