Which business structure allows for a single individual to own a business entity?

A sole proprietorship is a business structure that allows for a single individual to own and operate a business entity independently. This form of business is the simplest and most common structure for small businesses. The sole proprietor has complete control over all decision-making processes and retains all profits from the business. Additionally, a sole proprietorship does not require formal registration with the government, making it a straightforward option for individuals looking to start their own business without complex legal requirements.

In contrast, a corporation is a more complex business structure that involves multiple shareholders and is recognized as a separate legal entity from its owners. A partnership consists of two or more individuals who share ownership and responsibilities of the business. A franchise, on the other hand, is a business model where one party (the franchisee) is given the rights to operate a business under the branding and business model of another party (the franchisor). Therefore, these other structures do not align with the concept of a single individual owning the business entity, which is the defining characteristic of a sole proprietorship.