by Chad Hall
Sole Proprietorship - Business Entity, owned by one person, and there is no legal distinction.
Advantages - Sole Proprietorship is the simplest, and most common business entity.
Disadvantages - The main disadvantage is your company is liable for debt and other actions in the company.
Examples - Tutoring, Landscapers
Partnership - Association of two or more, profits and loses split proportionally.
Advantages - Both owners share equal rights.
Disadvantages - Partnerships can be very unstable, partnerships can bail, or partners death.
Examples - Real Estate, Graphics Design.
Limited Liability Partnership [ LLP ]
[ LLP ] - is a partnership where some partners have limited liabilities.
Benefits - Each partner is not reliable for other partners. There can be as many owners as needed, and requires much less liability.
Disadvantages - Downsides include additional taxes, and less business creditability.
Facts - LLP's take loans, partners aren't liable for debt.
Examples - Taxes + Assets
Corporation - Independent legal entity, operated by share holders.
Benefits - The corporation is responsible itself for legal actions, debt, and anything else that the corporation incurs. Corporation's can raise funds by selling shares into the company. As a share holder, you aren't liable for any legal issues.
Disadvantages - Forming corporation's is very expensive, and more time consuming then a other business structures. Government monitors corporations, this could add lots of extra paperwork.
Facts - BIG Corporations already dominate, so starting a new corporation is very difficult.