Advantages: you have complete control over decision making. Sale or a transfer can take place at the discretion of the sole proprietor. No corporate tax payments. Minimal legal costs to forming sole proprietorship. Few formal business requirements.
Disadvantages: the sole proprietor is responsible for all debts of the business. All responsibilities and business decisions fall on the shoulders of the sole proprietor.
Rules: insurance or other protection is important because claims against the business could result in seizing of a home or other things.
Facts: sole proprietor has control over the decisions of the business. The proprietor receives all the income that the business gets. because a sole proprietor and the owner are the same person, only one tax return needs to be in the file.
Advantages: they are easy to establish. With more than one owner the ability to raise funds would increase. Prospective employees may be attracted to that company.
Disadvantages: the partners are both liable and are held accountable for their actions. Profits must be shared with others. Not all decisions are based on one person and disagreements can happen.
Rules: if you're in a partnership, you cannot make a deal to buy from a supplier at a high price and know that you will receive a kickback from the supplier. its a violation of your duty to the partnership, and your partners can demand an accounting from you regarding the deal. If you're found to have violated your duties, the partners can sue you for damages.
Advantages: Each partner is personally responsible for there actions in the company including debts, liabilities and any bad acts of the other partners. The liability protection that comes with a LLP is a an advantage.
Disadvantages: death of partners, partners not consulting, special tax considerations.
Advantages: the liability of the owners towards the creditors is limited to their investment in the company.
Disadvantages: establishing a corporation is a complex process and requires registration with the central regulatory authority and listing on a stock exchange which required of certain requirements related to the amount of capital and number of directors.