Question

Which form of business is the simplest form of business? Which form of business is the most complex form?

Answer 1

The sole proprietorship is the most common form of business organization. One person conducts business for him or herself. A sole proprietorship is not a legal entity. It has no life of its own separate and apart from the owner of the business.

A sole proprietorship is the least complex form of business. It is easy and inexpensive to start up since the sole proprietor merely has to start doing business. Unlike some other forms of business organizations, like corporations or LLCs, the sole proprietorship does not have to register as a business entity with the state business entity filing office before conducting business.