A small business is an organization that is not incorporated as a corporation but rather operated as a sole proprietorship. In other words, it is owned and controlled by a single individual (the "owner" or "partner") who may or may not have employees. A sole proprietorship has all of the same advantages as a corporation, plus it has no double liability, no legal need for formalities, and no legal existence (separate from the owner). Instead of having to pay corporate tax, the owner of a sole proprietorship must pay income tax on his or her profits.