A sole proprietorship is the simplest kind of business structure. It is a business owned and operated by one person. If you are a sole proprietor, or if you are considering becoming a sole proprietor, some things you should be aware of include:
A partnership is a business where two or more persons join together to carry on a trade or a business (it can also involve two or more corporates, trusts, or partnerships). If you are considering forming a partnership, some things you should be aware of include:
There are different types of partnerships. Some important differences between two types of partnerships, limited and general, are reviewed below:
A corporation is an independent legal entity that is owned by its shareholders and is managed by its directors and officers (who may or may not also be shareholders). Because a corporation is a separate legal entity, it can do all of the things an individual can do. A corporation can borrow money, pay wages, sue another party, be sued, pay taxes and own property.
Some of the advantages of incorporating a business include:
Some of the disadvantages to incorporating a business include: