A sole proprietorship is a business owned and run by one individual where there is no legal distinction between the owner and the business. As the sole proprietor, the owner receives all profits and is personally responsible for all losses and debts of the business. Sole proprietorships have low start-up costs, maximum control for the owner, and simple tax structure but the owner has unlimited liability and responsibility. Common examples of sole proprietorships include small computer repair businesses, tutoring services, and individual financial planners.