True or False: Sole proprietorships are the least expensive business organizations to create.

Sole proprietorships are indeed the least expensive business organizations to create primarily due to their simplicity and minimal regulatory requirements. Unlike corporations or limited liability companies, which require formal registration and often involve complexities such as articles of incorporation, bylaws, and possibly legal counsel, a sole proprietorship generally requires only a basic business license and, in some cases, a fictitious name registration. This makes the startup costs significantly lower, as there are no incorporation fees or formal compliance costs associated with ongoing corporate governance.

Additionally, a sole proprietorship is owned and operated by a single individual, which means there is no need for formal meetings, extensive record-keeping, or reporting requirements that are typical for other business structures. This simplicity not only reduces costs at the outset but also allows for straightforward tax filing since the business's income is reported on the owner’s personal tax returns, avoiding the complex tax structures that partnerships and corporations face. Thus, the statement holds true that sole proprietorships are the least expensive business structure to establish.