Ryan Hohn Entrepreneurship Period 9

Sole Proprietorship Easiest and most popular form of business Receives profits Incurs losses Liable for all debts

Partnership Relies on skills, knowledge, and financial resources from others Must have at least one general partner Some include limited partners

Corporation C-Corporation, Subchapter S, non profit Most common corporate form Founders are generally shareholders

Sole Proprietorship Advantages Easy and inexpensive to create Owner has complete authority over business Least regulated form of business Business pays no taxes Disadvantages Owner has unlimited liability Raising capital is more difficult Reliant on skills and abilities of owner Death of owner dissolves the business

Partnership Advantages Inexpensive to create Partners have complete control Can share ideas Secure capital investments easily Disadvantages Difficult to dissolve one partners interest May be personality conflicts Partners can be held liable for each others actions

Corporation Advantages Status Limited liability Ability to raise capital investment money Perpetual existence Employee benefits Tax advantages Disadvantages Expensive to create Income is heavily taxed Subject to double taxation on income Pays taxes on profits Stockholders pay taxes on dividends