A majority of the small businesses in the United States are operated as sole proprietorship’s. This type of business organization is the simplest and is the form usually chosen by the one-person business, in which the owner and worker are the same person (although sole proprietorship’s can have employees). A sole proprietorship is not a separate entity from the owner-a sole proprietor directly owns the business and is directly responsible for its debts. Sole proprietorship’s are suitable for a business where personal liability isn’t a big worry — for example, a small service business in which you are unlikely to be sued and for which you won’t be borrowing much money for inventory or other costs.