Which one of the following is the simplest form of business to set up?

The simplest form of business to set up is a sole proprietorship. This is because a sole proprietorship requires minimal legal formalities and paperwork to establish. An individual can start this type of business without the need to file complex forms with the state or federal government, making it very accessible for entrepreneurs.

In a sole proprietorship, the owner has complete control over all business decisions and enjoys all profits directly. There are also fewer regulatory burdens compared to other business structures, such as corporations or limited liability companies, which often require more detailed formation processes, compliance with specific regulations, and ongoing tax filings. This simplicity appeals particularly to individuals looking to start a small business quickly and with little upfront cost.

While other business structures may offer advantages in terms of liability protection or tax benefits, they also come with more complexity in their formation and operational requirements. For example, creating a corporation involves drafting articles of incorporation, bylaws, and holding formal meetings, which are not necessary in a sole proprietorship. Therefore, the uncomplicated nature of a sole proprietorship makes it the easiest and fastest way to start a business.