An “unincorporated business” is a for-profit or non-profit interest that is operated without having formed a separate legal entity. An unincorporated for-profit business can be a sole proprietorship or a general partnership. An unincorporated non-profit is called an unincorporated association.

Unincorporated businesses carry a significant amount of risk because they do not offer limited liability. It almost always makes sense to form an incorporated entity to conduct business.