A sole proprietorship is a company that is completely owned by a single individual. This person and no one else is liable for all debts owed by the company, and any other responsibilities required to run the company. When the time comes to pay taxes for the business year, the company and its owner are considered to be as one together. Any profits that this individual's company has earned are therefore listed on the individual's own personal income tax form. This is known as a sole proprietorship because the owner is the only one in charge of the business, and has no partners. The individual operating under a sole proprietorship may use a trade name to identify his or her business, and may also use this name for the necessary bank accounts for the business.