An unincorporated business that is owned by one individual is called a sole proprietorship. It is the simplest and most flexible kind of business structure.
The owner of a sole proprietorship has responsibility for making all decisions regarding the business, providing a high degree of control. They also receive all the profits, claim all losses, and pay personal income tax on the net income generated by the business.
Important to note here, though, is that an owner of a sole proprietorship does not have separate legal status from the business, meaning they assume all the risks of the business, which extends to their personal property and assets.
The decision to incorporate, or not, is unique to each business’ situation, and will change over time. It’s definitely worth a discussion with your accountant (you DO have one, right?) to see what’s best for you.
To read more about the implications and advantages, check out this article from the QuickBooks Small Business Centre.