When I had my store, I just stayed a sole proprietor. However, in opening a studio, you may want to look at avenues that would protect you personally in the event of some catastrophic injury or disaster, by incorporating or going the LLC or other route. As a sole proprietor, you are responsible for all the bills, payments and any insurance claims. Incorporated, it only goes as far as the assets of the business, not your house or personal savings account - at least that's how I understood it.

On the other side, by incorporating, you need a board of directors, president, sec'ty, treasurer, etc., but so often members of the family are named to those positions, but you do have to be careful to follow the rules for meetings and administration of the corp. Can be done easily, millions do, but just saying you need to be aware of those.

I think your best course of action is to meet with a CPA and get their advice. I opted for LLC, but I'm not running a dance studio. When I was running a studio, we were a c-corp. But then again, the business was incorporated ages ago.

If you register as an LLC acting as a Sole Prop, you get the benefit of coverage, but don't have to bend 6 ways to Sunday for a president, secretary, etc. Check with your CPA - they will be the best source of advice for you - a lot depends on your State laws, as well. Good luck.