You do not have to take any direct action to form a sole proprietorship. As long as you are the only owner. In fact, you may already own one without knowing it. If you are a freelance worker, for example, you are a sole proprietor.
Advantages: easy to form and do taxes for.
Disadvantages: full risk is on you
-obtained from sba.gov
- it is easy to set up and you can have complimentary skills.
- Shared comitment giving both of you motivation.
- you share every payday and can end up disagreeing with each others way of doing things.
- You also share responsibility with your partner with everything he does.
A partnership is a busnes where both people running the busness share equal responsibility and power. This can be good because of the extra ideas but also bad because if your partner messes up it will affect you as well.
- Limited Liability. When it comes to taking responsibility for business debts and actions of a corporation shareholders personal assets are protected.
- Ability to Generate Capital. Corporations have an advantage when it comes to raising capital for their business.
- Time and Money. Corporations are costly and time-consuming ventures to start and operate.
- Double Taxing. In some cases, corporations are taxed twice.
Corporations are like apple and Sony no one person owns them but some people have more stalk in the company than others.
- You have limited liability because of all the people inside the busness who own peaces
- The profits are shared with everyone so even when you aren't making money someonelse is making it for you.
- If anyone ever leaves the busness the whole thing has to be destroyed and start back from the start.
The busness isn't taxed at all but the people running it are taxed by the government and have to pay out of pocket.