# Overview A sole proprietorship is the simplest form of business ownership, which is just a single person operating a business. It is commonly used for freelance work. If a business operating as a sole proprietorship expands to include additional people, it would evolve into a [[partnership]]. # Key Considerations # Pros - Straight-forward to setup with very minimal paperwork. Paperwork is only needed if you need to register a trade name # Cons - 100% liable for all debts of the business. You can be sued as an individual - More difficult to raise capital # Use Cases # Related Topics