Which type of business structure is the most difficult to set up and maintain?

The complexity of setting up and maintaining a business structure varies significantly among the different options. A corporation is typically recognized as the most challenging type to establish and sustain due to its rigorous legal requirements, which include formally registering the business, filing articles of incorporation, creating bylaws, and adhering to ongoing regulatory obligations, such as regular meetings, record-keeping, and reporting to shareholders.

In contrast, a sole proprietorship is the simplest form of business ownership, which requires minimal paperwork and formalities. A partnership also tends to be straightforward, although it necessitates a partnership agreement to define the terms between parties. An LLC offers a balance between the ease of a partnership and the liability protection of a corporation, but it still involves fewer complexities than a corporation would entail.

Thus, while all business structures come with their unique challenges, the corporation stands out for its higher level of regulatory scrutiny and administrative responsibilities, making it the most difficult to set up and maintain.