2.  Sole Proprietorship  Partnership  Corporation S Corporation

3.  Advantages Little Government Control Most Common  Disadvantages Difficult to Raise Money Private Assets are at Risk

4. One or more Partners  Advantages Little Government Control Share Profits and Losses  Disadvantages Share Profits and Losses Liable for Their Partners

5. 1. Name of the Business or Partnership 2. Name of the Partners 3. Type and value of the Investment each Partner Contributes 4. Managerial Responsibilities to be handled by each Partner

6. 5. Accounting Method to be Used 6. Rights of Each Partner to Review and/or Audit Accounting Documents 7. Division of Profits and Losses Among the Partners 8. Salaries to be Withdrawn by the Partners

7. 9. Duration of the Partnership 10. Conditions Under which the Partnership can be Dissolved 11. Distribution of Assets Upon Dissolution of the Partnership 12. Procedure for Dealing with the Death of a Partner

8.  Independently of its Owners  Legal Rights of a Person  Corporations Pay the Taxes Not the Owners  Enters into Contracts  Liable for Negligence

9.  Share of Stock (Unit of Ownership) Shareholders or Stockholders  Board of Directors Elects Senior Officers Determines Salaries Sets Rules for Conducting Business Sets Dividends

10.  Liability Only what You have Invested  Allowed to Sell Stock  Lenders more Willing to Lend  Shareholders do NOT Affect Day-to-Day Running of the Business

11.  Very Complicated (You have to Incorporate) Lawyers  Chartering  Registering Costly  More Government Regulations  Income Taxed Twice

12.  Organized Under the Subchapter S of the Internal Revenue Code Taxed as a Partnership  Done Because Most Businesses Lose Money the First 3 Years Tax Purposes