DIFFERENT KINDS OF BUSINESS OWHERSHIP

SOLE PROPRIETORSHIP

• Advantages ; Little government control, all decisions are made by the owner and all profits are gained by the owner.
• Disadvantages ; Difficult to come up with the money to start one, all losses are lost by the owner and only one person is investing in the business.

PARTNERSHIP

• Advantages ; You do not have to come up with the capital alone, the losses will be shared and little government regulation.
• Disadvantages ; You have to share the profits with your partner, you can be held legally accountable for something your partner has done and disagreements could occur.

CORPORATIONS

• Advantages ; Liability, momey can be raised back by selling stock and the main shareholder can change.
• Disadvantages ; Complicated, costly and more government regulation.

LIMITED LIABILITY COMPANY

• Advantages ; S-corporation rules, not taxed as a business and owners are known as members.
• Disadvantages ; a single owner cannot establish an LLC and shareholders are taxed on their profits.