Buisiness Entity's

by Chad Hall

Sole Propietorship

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

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.

Buisiness Entity

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

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Corporation

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.