Formally referred to as sole proprietorship or proprietorship, but occasionally referred to as DBA (doing business as) or Trade Name or Business Name, this is the simplest form of a business structure. One person performs all the functions required for the successful operation of the business. The proprietor secures the capital, establishes and operates the business, assumes all risks, accepts all profits and losses, and pays all taxes. The proprietor is said to be self-employed.
Any legal responsibilities arising out of the business activities are the proprietor’s. All assets – business or personal – can be legally used to discharge the liability.
The business name of a sole proprietorship is NOT protected. This means a corporation or another proprietorship or partnership may have the same or similar name, and this is why some individuals choose to incorporate as it does provide some protection for that name.
A proprietor can be an individual or an incorporated company. An incorporated company that registers a name as a sole proprietorship is occasionally referred to as a "D.B.A." (doing business as) name.