Final answer:
For a sole proprietorship, the greatest nontax benefit is the minimal time and cost required to set it up, offering ease of starting the business and direct owner control.
Step-by-step explanation:
If an individual forms a sole proprietorship, the nontax factor that will be of greatest benefit to the sole proprietor is minimal time and cost to organize. Sole proprietorships are known for their ease of formation and the direct control they offer. There are no complex legal formalities or large expenses associated with setting up a sole proprietorship, making it an attractive option for many entrepreneurs.
Unlike corporations, sole proprietorships do not offer liability protection for the owner's personal assets, do not facilitate initial public offerings due to their nature of being privately owned by one person, and the rights and responsibilities are a direct reflection of the owner's decisions without the need for elaborate legal definitions. However, the simple structure of a sole proprietorship does provide great operational flexibility for the owner which can be advantageous.
In a sole proprietorship, the nontax factor that will be of greatest benefit is minimal time and cost to organize. This means that it is quick and relatively inexpensive to start a sole proprietorship compared to other business structures. The owner can easily set up the business without the need for extensive legal or administrative processes.