3 Types of Businesses

Proprietorships, Advantages, Disadvantages


Structure: a business owned and operated by a single person

Advantage: can make your own decisions and the profit is yours

Disadvantage: has unlimited liability or complete legal responsibility for all debts and risks


Structure: owned by two or more people and agreement is signed by them

Advantages: they pay no corporate income tax, raise more money between the people, skill set may be different, and if you are struggling then you can bring in more partners to provide funds

Disadvantages: each owner is fully responsible for all debts of the partnership no matter how much they own of the company everyone is liable


Structure: charter- government document permission to organize also specifies amount of stock

Advantages: ease of raising financial capital. easier to borrow large sums of money. ease of raising capital and allows to grow huge

Disadvantages: expensive and complex to set up. Businesses owners have little say in the managements of the businesses. Are subject to more regulation by government. Double taxed... profits are taxed twice once from government and once from the stockholders