SOLE PROPRIETERSHIP ADVANTAGES

ADVANTAGES

• All profits go to owner.
• All business decisions are made by the owner.

DISADVANTAGES

• Difficult to find starting money
• All risk is on the owner
• Debt from the company will be placed on you if it goes bankrupt

PARTNERSHIP

ADVANTAGES

• Both provide capital
• Losses are shared
• Less government regulation

DISADVANTAGES

• Responsibilities must be shared
• Held liable for mistakes made by your partner
• Disagreements will occur

CORPORATION

ADVANTAGES

• Liability
• Money can be made by stock
• More lenders

DISADVANTAGES

• Must follow rules
• Difficult to find start up money
• Increased business regulations

S-CORPORATION

ADVANTAGES

• Protected assets
• Pass-through taxation
• Heightened credibility

DISADVANTAGES

• Ongoing expenses
• Stock ownership restrictions
• Less flexibility in allocating income and loss