The Sole proprietorship : owned by 1 person

The Sole proprietorship : owned by 1 person

ADVANTAGES	DISADVANTAGES
*simple to start the business and easy to dissolve it; *own all profit *be your own boss *make management decisions alone *pay tax only on personal income	*unlimited liability : owner is responsible for claims against the firm that go beyond the value of the owners’ ownership in the firm.(car,house...) *difficulty raising funds for expansion *often have no one to share the management burden *suffer from impermanence of the firm

The Partnership : an association of two or more persons to carry on as co-owners of a business for profit.

Partnership Agreement : oral or written contracts between partners.

ADVANTAGES	DISADVANTAGES
*start business with little difficulty *pool their funds and borrowing power *have more chance to specialize in running the business *no tax on profits of business,only on personal incomes	*unlimited liability(option of limited liability) *potential for personal disagreement *impermanence of the firm *the freezing of each partner’s investment in the business

The corporation : a legally chartered organization that is separate and legal entity apart from its owners.

ADVANTAGES	DISADVANTAGES
*exists as a separate legal entity *limited liability for its owners *enjoys long life *transfers ownership easily *has more financial capacity	*special&double taxation *complex & costly formation and dissolution *considerable government regulations and public requirements