Many new entrepreneurs choose to set up as a sole proprietorship initially primarily because a sole proprietorship is a simple setup that generally requires no formal action to establish. This business structure is straightforward, allowing entrepreneurs to quickly start their business activities without the complexities and costs associated with forming other business entities, such as corporations or limited liability companies (LLCs). This ease of formation is particularly appealing for those just starting out or testing a business idea.
Why do many new entrepreneurs setup legally as a sole proprietorship at first?
A sole proprietorship protects the business owner from legal or financial trouble.
A sole proprietorship requires the owner to pay less in taxes initially.
A sole proprietorship is the most lucrative type of legal business structure.
A sole proprietorship is a simple setup that generally requires no formal action to establish.
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