This document compares the pros and cons of different business entity structures. It lists advantages of corporations such as limited liability, ability to raise investment money, and tax advantages. However, corporations are also more expensive to set up. Sole proprietorships are inexpensive to create but the owner has unlimited liability. Partnerships allow for ideas to be shared but personalities conflicts could arise. Overall, the document weighs the pros and cons of different structures without recommending one over the others.

2. PROS
Status
Limited Liability
Ability to Raise investment money
Perpetual existence
Employee benefits
Tax advantages
CONS
Expensive to set up
Cost between $500-$2,500
Income is more heavily taxed
Pays taxes on profits

3. Easy to
create Unlimited
Liability
Business The
Inexpensive entrepreneurs
Limeted to
doesn’t pay total reliance
to create private assets
taxes on the abilities
may be taken
and skils of
to pay what is
the owner
owed
PROS CONS
Owner has
Least
complete
regulated by Death of
authority
the If it fails debt owner
over the
government remains dissolves the
business
business
Owner
receives all
profits Difficult to
raise money

4. Inexpensive May not be
to create preferred
Difficult to dissolve
General Partners can
one partner’s
PROS CONS
Secure partners be held liable
interest in the
investments have for each
business without
more easily complete other’s
dissolving the
control actions
partnership
Ideas can be Personality
shared conflicts

5. I listed 6 advantages for Corporations
and 6 advantages for Sole
Proprietorships. While at the same
time Sole Proprietorships had the
most disadvantages with 6, and the
other 2 both only had 4
disadvantages.

6. No, I wouldn’t suggest for them to do that because the
one with the most advantages also has the most
disadvantages, so its even. It also depends on what
business their trying to start and how much money they
have to start their business.
I would honestly either pick the Sole Proprietorship or the
Partnership if I was starting a business like that. I say this
because it’s a seasonal business and you could easily run
it by yourself during the reason. I say the Partnership
because you could team up with a restaurant, sledding
place, or another type of store for more entertainment and
to bring in more business.