What is the easiest and cheapest type of business to setup?

The easiest and cheapest type of business to set up is a sole proprietorship. There are very few complications or formalities that you need to worry about following and the associated fees are fairly low. Partnerships are only slightly more complicated and expensive, but still relatively easy for anyone to setup. Corporations and LLCs take considerable more time and expense to setup, but are worth it if you need limited liability or are going to need significant investment/start-up funding.