| A | B |
|---|
| Sole Proprietorship | Single owner; receives all + and -; all debt |
| Advantages of Sole Proprietorship | Simple to establish; owner controlled; no “double taxation” |
| Disadvantages of Sole Proprietorship | Owner has unlimited liability; may be difficult to obtain financing or transfer business |
| Partnership | Two or more persons; purpose=making + |
| Advantages of Partnership | Simple to establish; shared control and knowledge; no “double taxation” |
| Disadvantages of Partnership | personally liable for debts/torts; may be difficult to transfer business |
| Corporation | Separate legal ownership=shareholders=>own stock; profits may be held in bus./paid=dividends |
| Advantages of Corporation | Ltd L; ease of transferability; confidence/integrity to raise capital; professional mgt |
| Disadvantages of Corporation | Managers are often distant from owners; “double taxation” |
