Which type of business organization is the simplest?

The simplest type of business organization is the sole proprietorship. This structure is defined by the fact that it is owned and operated by one individual, which means it requires minimal legal formalities to establish and maintain. A sole proprietorship does not require registration as a separate legal entity, unlike corporations or limited liability companies, which involve more elaborate formation processes including filing articles of incorporation and adhering to various compliance requirements.

Additionally, a sole proprietorship allows the owner to have complete control over the business and its profits. It also benefits from straightforward tax treatment, as the business income is reported directly on the owner's personal tax return, avoiding the double taxation often seen in corporations. This simplicity in structure, management, and taxation makes the sole proprietorship an accessible option for many entrepreneurs starting their own businesses.