The sole proprietorship is the simplest business structure to create and maintain. It’s the default business structure for solo business owners. If you’ve started a business and haven’t filed for a formal legal structure yet, then your business is a sole proprietorship.
There are minimal legal costs associated with forming a sole proprietorship: you just need to make sure you’re complying with any local zoning and business permit laws. Additionally, a sole proprietorship has few formal business requirements. Sounds good, right? This simplicity and affordability are why many small businesses in the U.S. operate as sole proprietorships.
