3 types of business

Sole proprietorship

Def: When a business is owned by a single person.

Ex: Creative Cuts and Tans In Rockwell, NC

2 Adv: No ongoing formalities. No unemployment tax on yourself.

2 Dis: Owner outlasts business. Cant sell interest in business to raise capital.

Partnership

Def: A business owned by at least 2 people.

Ex: Lead Chunkers in Rockwell, NC

2 Adv: Business has no income tax. Easy to start up.

2 dis: Risk of disagreements. Each partner is liable for the others actions.

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Corporation

Def: Independent legal entity owned by shareholders

Ex: United Airlines Charlotte, NC

2 Adv: You are not responsible for assets or debts. Incorporating protects personal assets from lawsuits.

2 Dis: Manipulation. Double the tax.