There are many advantages for each type of business. Sole Props are the easiest to set up
since the paperwork is minimal. A partnership is a a business set up by two or more
people. A LLC (limited Liability Corporation) is a flexible business that combines the
aspects of both partnerships and corporations. Corporations are created by shareholders.
They have many more tax advantages then the other types.
Sole Props allow the owner to have complete control. However, it also provides the least
protection from personal assets. b Partnerships have pass through entity which means that
the income is treated as the owners’ incomes so it is only taxed once. Owners in
partnerships are responsible for the liabilities of the firm.(Team, 2022) there are different
aspects of partnerships: General, Limited Partnership, and LLPs. LLCs are considered to be the
best of both worlds. LLCs protect the owners from any personal liabilities. The Corporations
can be classified as C Corp and S Corp. C Corps are double taxed: once at the entity level and
then again individually. S Corp are a pass through so they are only taxed once.
Works Cited
Team, C. (2022, Nov 26). Types of Businesses. Retrieved from Corporate Financial Institute:
https://corporatefinanceinstitute.com/resources/management/types-of-businesses/
