It is a business owned by one person (sole proprietor) and not incorporated. It is the simplest legal form to start a business. The sole proprietor must assume all the responsibilities and decisions related to the business alone. There is no separate legal status between the owner and the business. He keeps all the profits and deducts all the losses he reports on his personal tax return. The owner bears all business risk and there is no legal distinction between his personal assets and the assets of the business. The owner can choose to register it under a trade name or operate it under his own name.