Question

Which of the following business ownership structures offers the best liability protection but higher taxes? A. A nonprofit corporation B. A C corporation C. A partnership D. A sole proprietorship

Answer 1

The answer is D. In a sole proprietorship, you're usually a freelancer, doing business by yourself on Amazon or Ebay and thus you aren't expected to go through all the things that you need to start a corporation or non profit. With that ease comes some risks such as less tax loopholes to take advantage of and if you don't have independent liability protection, you might be personally liable for any debts owed by your business.