Final answer:
Creating a LLC offers limited liability protection and flexibility in terms of management and taxation. Remaining as a sole proprietorship provides simplicity and control over the business.
Step-by-step explanation:
Creating a limited liability company (LLC) has several advantages. First, a LLC offers limited liability protection, meaning that the owners' personal assets are protected in the event of business debts or legal issues. Additionally, forming a LLC provides flexibility in terms of management and taxation. For small businesses, remaining as a sole proprietorship may be preferred because it is the simplest and least expensive business structure to establish. It also allows for complete control and decision-making authority.