Sole Proprietorships are the most simple and least complicated form of business entity. You don't need to do much to be a sole proprietor - just "hang out a sign" that you are in business. I would generally only recommend a sole proprietorship if you aren't making a lot of money, have no employees, and your business liability risk is low. If you do decide to be a sole proprietor, get some business insurance.
A risk with being a sole proprietorship is unlimited liability. What this generally means is that if your business is sued, your personal assets are wide open if a lawsuit is brought against your business. This makes your business entity decision very important as it seems that many people like to file lawsuits when they are wronged.
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