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This is an essay form! Identify the main types of business entities and discuss

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This is an essay form!
Identify the main types of business entities and discuss the advantages and disadvantages of each.
Proprietorship-
Advantages
1. Easy to create and maintain
2. Business and owner are the same entity.
3. No double taxation- Business profits are included in proprietor’s personal income taxes
Disadvantages
1. Owner is peronally liable for debts and other liabilities of the business.
2. Difficult to raise capital due to single ownership.
General Partnership
Advantages
1. Easy to create and maintain
2. No double taxation.
Disadvantages
1. All owners are jointly and personally liable for debts and other liabilities of the business.
2. A partner cannot transfer his shares without unanimous consent of all partners.
Limited Partnership
Advantages
1. Limited partners enjoy limited liability of the business.
2. Limitied partners can leave without dissolving partnership.
Disadvantages
1. Expensive to create then a general partnership.
2. General partners are jointly and personally liable for debts and other liabilities of the business.
Corporation
Advantages
1. Limited liaiblity of the owners of busines.
2. Easy to attract money.
Disadvantages
1. More expensive to create and maintain.
2. Complicated paperwork to be filed.
3. Double taxation

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