Esperanza is starting a business by herself as an illustrator for magazines and children's books. She isn't concerned with personal liability, but she wants the business to be easy to set up.

sole proprietorship

Explanation:

The owner sources capital by themselves, register the business and starts operations. A sole proprietorship is simple to registers and start. Only a registration certificate and a trading license from the local authorities is required.

Esperanza should open a sole proprietorship business. The trader keeps all the profits by themselves, is the boss in the business, and taxation is friendly. The biggest drawdown in this business ownership type is that the owner has unlimited liabilities to its debts. Esperanza is not concerned with limited liability and wants something easy to set up.

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