What are the advantages and disadvantages of a sole proprietorship?

What are the advantages and disadvantages of a sole proprietorship?

PROS: simplest and least expensive form of ownership to establish, single owner has flexibility to run business on her own, owner retains all of the profits, and earnings are taxed only as income of owner with no separate tax levied on the business itself.

CONS: single owner has unlimited liability for debts of business, requires one to work long hours and assume heavy responsibilities, it may be difficult to raise funds for expansion, and they have a limited life.

What are the characteristics of the four basic forms of business ownership?

What are the characteristics of the four basic forms of business ownership?

SOLE PROPRIETORSHIP (owned and usually managed by a single person), PARTNERSHIP (voluntary arrangement under which 2+ people act as co-owners of a business for profit),

CORPORATION (legal entity created by filing a document with a state agency, and is also considered to be separate and distinct from its owners who have limited liability for the debts of their company),

and LIMITED LIABILITY COMPANY (relatively new, like corporation offers limited liability to all of its owners, also offer more flexibility in tax treatment and have simpler operating requirements).