A sole proprietorship is a business that is owned by an individual and that is not formed pursuant to any special legal construct, such as a limited liability partnership or a corporation. As a sole proprietor, the individual who owns the business has the exclusive right to make business decisions. It is a rather inexpensive way to operate a business since there are no corporate taxes, filing fees and few, if any, legal fees associated with creating or operating a sole proprietorship. However, sole proprietors should be aware that they can be held personally liable for any negligent or willful misconduct that occurs in the course of their business.