A sole proprietorship is the simplest structure -- quick and cheap to set up -- but offers no legal separation between the owner and the business, meaning personal assets are at risk if the business incurs debt or is sued. A limited liability company (LLC, called a 'Limited' or 'Ltd' in Nigeria) is a separate legal entity that protects the owner's personal assets, generally required to work with larger clients, apply for most grants, or raise outside investment, though it involves more paperwork and ongoing compliance. In Nigeria, business registration is handled by the Corporate Affairs Commission (CAC), which offers both business name registration (for sole proprietorships, cheaper and simpler) and incorporated company registration; other African countries have their own equivalent bodies, such as Kenya's eCitizen platform or South Africa's CIPC. Beyond registration, new businesses should plan for tax obligations from the start -- including value-added tax (VAT) on applicable goods and services and company income tax -- since retroactively sorting out unpaid taxes is far more costly than budgeting for them from day one.