LAW 531 Business Forms Worksheet

ADVANTAGES AND DISADVANTAGES

Business Forms

When a person or persons choose to start a business, many factors must be considered when deciding the type to create. Some of the factors include liability, taxes, continuity, control, profit retention, location, and other requirements.

Sole Proprietorship - A sole proprietorship is the most commonly formed company in the United States. It is the easiest to create since the owner simply begins to conduct business transactions. It is beneficial to the owner because he remains utterly autonomous. There is no difference between the owner and the company. Disadvantages of a sole proprietorship include unlimited liability and inability to raise working capital.

1. Liability - This form of business has unlimited...