Sole Proprietorship

This is a business structure where there is one person in charge and one person owning the company.

There is unlimited liability: If something goes wrong and the business is sued, lawyers can come after all the business assets and all the owner's assets—even their house and car and other stuff that's not linked to the business at all. Why? Because the business is simply an asset the owner has; there is no divide or safety barrier between the business and the owner.