Detailed Answer
(a) Federal or state governments do not typically require
any formal filing. If the business operates under a name
different from that of the sole proprietor, most states require that
a fictitious name statement be filed. Answer (b) is incorrect because
the sole proprietorship and the sole proprietor are not
separate legal entities. Answer (c) is incorrect because a sole
proprietor does not have partners or shareholders from whom to
obtain capital. Answer (d) is incorrect because the simplicity of
this business structure is one of its advantages in its formation
and operation.