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Hi! Recently, We just introduced the different terms of business entities, namely Sole Proprietorships, Partnerships, Limited Liability Partnerships, Limited Liability Companies and Corporations.
Here, we seek to access their advantages and disadvantages.

Sole Proprietorships
Advantages
Establishing business and paper is simple
Do not have to prepare a balance sheet for your business
Can file a single income tax return for both yourself and the business
You are the BOSS

Disadvantages
Burdened with the unlimited personal liabilities
Cost of reinvesting tour income is higher

Partnership
Advantages
Expense of starting is lower
Resources, workload and ideas are shared
Making decisions on behalf of partnership is simple
Simple Taxation

Disadvantage
Partners have unlimited personal liabilities
Liable for each other's decisions
Death or withdrawal of a partner may cause serious threat to the partnership

Limited Liability Partnerships (LLP)
Advantages
General Partners do not have to give up control of the business to the limited partners
Limited partners can put money into business without facing unlimited personal liability
Allows partnerships to expand and raise money without having to incorporate or issue stock.
Withdrawal or death of a limited partner does not automatically dissolve partnership

Disadvantages
Unlimited Personal Liability
Paperwork can be bad
Laws dealing with limited partnership may be complicated


Limited Liability Companies
Advantages
Almost everyone can be a member
Limited Personal Liability
Freedom in making ownership and management decisions
Easy to establish and maintain
Same tax structure as partnership

Disadvantage
Laws governing LLCs are evolving rapidly

Corporations
Advantages
Corporate shield protects the corporation's owners from unlimited personal liability
Low tax rates
Raising capital by selling stocks is an option

Disadvantages
Payment of corporate tax on its earning.
Keeping and filing of various financial statements and forms

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