Once you decide to establish a business you will need to decide what type of business organization to use.
Most small businesses operate as sole proprietorship.
This is the simplest form of organization without the greatest freedom from regulation and paperwork. Less paperwork, a minimum of legal restriction, owner receives all of the profits, and ease in discontinuing the business. Unlimited personal liability for all the debts of the business, limited ability to raise capital, and the business terminates with the owners death. A partnership is similar to a sole proprietorship except that two or more people are involved. The partnership is formed by virtue of an agreement entered into by each partner.