LEGAL FORMS OF OWNERSHIP

SOLE PROPRIETORSHIP

• Advantages:
• Business is simply ran
• Sole proprietor keeps all profits

SOLE PROPRIETORSHIP

• Disadvantages:
• Difficult to raise money for business
• Alone when investing in business
• Personal assets may be taken if business fails

PARTNERSHIP

• Advantages:
• Losses are shared between owners
• Variety if areas of expertise
• Capital is raised by both owners

PARTNERSHIP

• Disadvantages
• Partner take some profit
• One partner's actions can impact another partner

CORPORATION

• Advantages:
• Entrepreneurs earn liability
• Entrepreneurs can sell stocks to earn more

CORPORATION

• Disadvantages:
• Complicated to start business
• Assistance of a lawyer is needed

LLC

• Advantages:
• Provides benefits of partnership taxation
• Provides limited personal liability for owners

LLC

• Disadvantages:
• State can limit what type of business an LLC is
• Cannot be established by a single owner