Sole proprietorships are the most common type of online business due to their simplicity and how easy they are to create. A sole proprietorship is a business owned and operated by a single person, and requires no registration.
If you're operating a one-person business, you're automatically considered a sole proprietor by the government. However, depending on your products and location, you may need to register for local business permits with your city or state.
An important thing to note is that there isn't a legal or financial distinction between the business and the business owner.
This means that you as the business owner are accountable for all of the profits, liabilities, and legal issues that your business may encounter—not typically an issue as long as you pay your bills and keep your business practices honest.
If you're starting an ecommerce business by yourself, a sole proprietorship is probably the best type of business for you. If you're starting a business with one or more partners.
