A sole proprietorship is the simplest business structure available. In a sole proprietorship, you are the sole owner of your business and entitled to all the profits and also responsible for any debts and losses. You do not have to do anything special to form a sole proprietorship. You just need to be the only owner of the company and the status is set.  The main advantages of a sole proprietorship is that it's easy and inexpensive to form. You also have full control of the company and tax preparation is fairly easy.  The main drawback to a sole proprietorship is that there is no legal separation between you and your business. This makes you liable for all debts an obligations. As you can't sell stock as a sole proprietorship, it can be difficult to raise funds for expenses. It can also be very stressful to handle all responsibilities alone. If you're worried about too much responsibility and liability, consider a partnership or LCC. In these arrangements, you're more protected and it may be easier to raise money for expenses. In a partnership, two or more people share ownership and responsibility of a business. In an LCC, your business would be a hybrid of a corporate structure and a partnership.  In a general partnership, you and another business partner share responsibility equally. In some types of partnerships, like a limited partnership, one person has slightly more control than the other. The main advantages of partnerships are they're easy and inexpensive to form, commitment is shared, you can find someone whose skill set compliments yours, and partnerships tend to attract more competent employees. The drawbacks are you will still have a lot of liability, disagreements between partners can hurt business, and profits are shared.  In an LCC, you're not an owner but a member and the way the structure is set up limits your liability. This is the main advantage to the LCC structure. Other advantages include less record keeping and profit sharing is far more flexible. Drawbacks include the fact LLCs can dissolve if too many members drop out and the self employment taxes associated with this structure can be complicated. Forming a corporation can be a complicated process. However, forming a corporation can make running your business easier. Consider the corporate model when making a decision about your business.  The main advantage of a corporation is that you save a lot on taxes. Tax rates for corporations are generally lower. Your business will also have an independent life, separate from you, which limits your personal liability.  The biggest drawback about corporations it that operating processes are much stricter. Shareholders also have compensation requirements that can be difficult to meet if you're a smaller company.
Consider a sole proprietorship. Learn about partnerships and LLCs. Familiarize yourself with corporate options.