What is the simplest form of business ownership where one individual owns and operates the business?

The simplest form of business ownership is a sole proprietorship, where one individual owns and operates the business. This structure is characterized by its straightforward formation, as it does not require any formal registration processes or complex legal frameworks unlike corporations or partnerships. In a sole proprietorship, the owner has full control over decision-making and receives all the profits generated from the business, but they are also personally liable for any debts and obligations incurred by the business. This ownership structure is often favored by small business owners and freelancers due to its ease of setup and minimal regulatory requirements.

In contrast, partnerships involve two or more individuals sharing ownership and responsibilities, which complicates decision-making and liability. Corporations, such as C Corporations, are more complex structures that offer limited liability protection and require formal incorporation processes, including more extensive regulatory compliance, which isn't the case for sole proprietorships. Likewise, a Limited Liability Company (LLC) provides a blend of features from sole proprietorships and corporations, incorporating liability protection but also more complex management requirements. Thus, the sole proprietorship's simplicity and autonomy set it apart as the most basic form of business ownership.