A sole proprietorship is both owned and managed by an individual. There is no legal separation between the owner and the business. Hence, the owner enjoys the profits and bears the losses alone. Its formation is simple; the owner decides on a name that has not been used by any other entity before. It is then legally registered with the federal, state or local government to make it legitimate (Kraakman, 2017). Forming a partnership entails people sharing the same interests (partnership) come to a contractual agreement. In most cases, a joint venture is constructed to signify an agreement between the parties involved. LLP is a company where liability is limited while LLC and PLLC are forms of corporations where the liability of the owners is limited. The best amongst the above is a sole proprietorship, given the benefits enjoyed by the owner. It is easier to start up and manage, and the owner enjoys the benefits alone.
Kraakman, R. (2017). The anatomy of corporate law: A comparative and functional approach. Oxford University Press.