The simplest form of business is called an individual proprietorship. The word proprietor comes from French and Latin words for property owner. The proprietor owns all the property of the business and is responsible for it. This means the proprietor receives all the profits.
But this also means that the proprietor is responsible for all the debts of the business. Also, any legal action against an individual proprietorship is taken against the owner. The law recognizes no difference between the owner and the business.
Most small businesses in the United States are individual proprietorships. The Census Bureau says there are more the twelve-million of them. United States tax law has simpler reporting requirements for these kinds of businesses. One person may be able to complete all the tax documents required.