Partnership
All are very different. But all can be very successful
Disadvantages:
- difficult to dissolve ones partner's interest without dissolving partnership
- personality conflicts
- when one dies the partnership ends
Advantages:
- inexpensive to create
- partners share debts
- share ideas
- secure investments
Corporations
Sole Proprietorship
Advantages:
- limited liability and status
- raise investment money
- employee benefits
- tax advantages
- perpetual existence (continuous life regardless of changes in ownership)
- access to stock market
Disadvantages:
- full responsibility for debts
- raising money may be difficult
- debts are paid from the owners personal assets
Advantages:
- easy and inexpensive
- gives owner complete authority over all of it.
- tax is lower
Disadvantages:
- expensive to set up
- costs between $500 and $2,500 to create
- income is heavily taxed
double taxation is applied to earnings
Advantages and Disadvantages of Business ownership