Which of the following is the most difficult and expensive legal form of business to set up?

Corporations are indeed considered the most difficult and expensive legal form of business to establish due to several factors. Firstly, the incorporation process often requires extensive documentation, including articles of incorporation and bylaws, which must comply with both state and federal regulations. This complexity can lead to higher legal and administrative costs.

Additionally, corporations usually need to conduct formalities like holding regular board meetings and maintaining detailed records, which add to both the time and expense of operating. They are also subject to double taxation; the corporation pays taxes on its profits, and then shareholders pay taxes on dividends they receive, which is a distinct financial burden not typically faced by other business structures.

Conversely, sole proprietorships are the simplest and least expensive type of business to set up, requiring minimal paperwork and no formal registration, apart from any necessary licenses. Partnerships, while more complex than sole proprietorships, are generally less costly to establish compared to corporations. Limited liability companies (LLCs) offer a blend of simplicity and liability protection but still do not match the complexity and costs associated with forming a corporation. This combination of regulatory requirements, formalities, and tax implications makes corporations the most challenging and costly business structure to set up.