A sole proprietor is the simplest form of business ownership. In it, a single individual person operates a business. They can buy and sell goods, provide services, own rental properties, or make investments. It can be a good form of business when starting a small home business, but as your business grows, there may come a point when you need to consider other forms of business structure.
An example John wants to start a snow removal business. John goes to the local hardware store and buys a shovel. His neighbors agree to hire him to clear their sidewalks and driveways the morning after it snows. When he does this, they pay him the agreed amount in cash or by cheque. John is in business as a sole proprietor.