As the article explains, 70% of US businesses are formed as sole proprietorships. The main reason for this is that the simplicity of the structure makes this the easiest type of business to form and run, particularly if the proprietor is relatively inexperienced in business ownership. To register a sole proprietorship, all that is needed is to get a license or permit and declare to your local government that you have formed the business. The business and the owner are essentially one entity, with the owner entitled to all the profits (and responsible for all the debts). As such, many people find sole proprietorship the most convenient approach to business.
It's no secret, also, that the prospect of going into business without the need for filling out complex tax returns makes this form of business even more appealing. A sole proprietor does not need to fill out a balance sheet for the business but can declare its tax as part of his or her own personal tax return. Should the business get into trouble, it's also relatively easy to dissolve the business, as the proprietor is autonomous and does not need to get the consent or agreement of any other partners or shareholders.
There are, of course, disadvantages to this form of business, chief among them being that the sole proprietor is personally liable if the business is sued. Incorporated businesses have separate assets, meaning that if the company is sued, the owner's assets cannot be seized. An incorporated business may also find it easier to get a bank loan.
That said, for many, the ease of sole proprietorship seems to outweigh the disadvantages. Sole proprietor businesses are cheap to start up, administratively easy to run, and do not require any complex tax affairs. The sole proprietor is also able to make all his or her own business decisions autonomously—after all, the lure of being one's own boss is the drive behind many people's shift into entrepreneurship.
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