Angelica has been studying various forms of business ownership for her art gallery. She thinks she will select this type of legal structure because it is the easiest and most common form of business ownership for small business owners. (1 point) Responses Partnership Partnership Corporation Corporation Sole proprietorship Sole proprietorship Limited liability company Limited liability company
Sole proprietorship
The type of legal structure that Angelica is likely considering for her art gallery would be a sole proprietorship.
Based on the information given, Angelica is looking for the easiest and most common form of business ownership for her art gallery. To determine the best option, let's analyze the given choices:
1. Partnership: A partnership is a legal structure in which two or more people share the profits and liabilities of a business. While partnerships can be relatively easy to set up and operate, they might not be the most common form of business ownership for small businesses.
2. Corporation: A corporation is a legal entity separate from its owners. It offers limited liability protection to its shareholders and can raise capital by selling stocks. However, setting up and operating a corporation can be more complex and expensive compared to other forms of business ownership.
3. Sole proprietorship: A sole proprietorship is the simplest form of business ownership, where an individual owns and operates the business. It offers ease of set up, full control of decision-making, and simplified taxes. Sole proprietorships are common among small businesses.
4. Limited liability company (LLC): An LLC combines some aspects of both a partnership and a corporation. It provides limited liability protection to its members while offering more flexibility in terms of management and taxation. LLCs have become increasingly popular among small business owners.
Given Angelica's preference for an easy and common legal structure for small businesses, the best option would likely be a sole proprietorship. It is the simplest and most commonly used form of business ownership, providing Angelica with control and simplified tax obligations.
To establish a sole proprietorship, Angelica would typically need to register her business with the relevant local and state authorities, obtain necessary licenses and permits, and ensure compliance with local regulations. She may also need to consider additional factors like liability insurance, business banking, and accounting practices.
It's important to note that while a sole proprietorship is easy to set up, it does not offer the same level of liability protection as a corporation or LLC. Angelica should carefully consider her specific circumstances and consult with legal and financial advisors to make an informed decision for her art gallery.