What business structure is known for being easy to set up but has unlimited liability?

A sole proprietorship is a business structure that is particularly known for its ease of setup and simplicity. It typically requires minimal paperwork and can often be started without formal registration, making it an attractive option for individual entrepreneurs. This accessibility allows owners to quickly launch their business ventures without facing the complex regulations or formalities associated with other structures.

However, one of the key characteristics of a sole proprietorship is that it comes with unlimited liability. This means that the personal assets of the owner are at risk in the event of business debts or legal liabilities. If the business incurs debt or is sued, creditors can pursue the owner's personal assets to satisfy those obligations. This level of risk contrasts with other business structures, such as Limited Liability Companies or corporations, where the owners are typically protected from personal liability.

In summary, the sole proprietorship is notable for its straightforward establishment process and the significant risk it poses to the owner's personal assets due to the feature of unlimited liability.