B. Sole Proprieter

Sole Proprietorship
A sole proprietorship is the simplest legal business form.  If your business is a sole proprietorship, you and your business are one and the same.  You don’t have to file separate documents or business tax forms, or really to anything to get started.  You report your profits and losses on Schedule C of your personal tax return using your Social Security Number or your business’s Employer Identification Number (EIN).  Because there is no legal separation between you and your business, you are fully responsible and liable for any debt or legal action against the business.  Also, as the name suggests, this structure doesn’t work if you have a partner.