Advantages Sole Proprietorship Disadvantages

-Control over money aspect -Liable for everything (Debts,

-Work for yourself taxes, etc.)
-Operating freedom and -Micro managing on your own
flexibility -Delegating more work to be
-Take time off when you done
want (For appointments, -Limited home life at times
etc.) -Limited resources
-Idea freedom
 Advantages Partnerships Disadvantages

-Two heads are better than one -Loss of autonomy

-Easy to establish -Possible future selling issues (If the
-Prices are lower partner doesn’t want to sell)
-More capital available -More liabilities
-Share financial issues -Could lead to debates which could lead
-Moral support (Someone to talk to loss of money
and help you)
 Advantages
-May be able to raise additional
funds by selling shares
-May deduct the cost of benefits it
provides to employees
-Limited liability
-Source of capital
-No income taxes to shareholders
Corporations Disadvantages
-Excessive tax filings
-Independent management
-Taxes for some corporations
shareholders income can be doubled
-The corporation pays federal and state
taxes
 Advantages
-Established business
-A known brand
-Simpler business franchises
-Less likely to fail
-Possibly can make more money
-Support and security
-Business relationships
Franchises Disadvantages
-Buying one means you are entering a
formal agreement with your franchisor
-Little room for self creativity
-Usually restrictions on when and how
you operate the franchise
-Could be difficult to manage
 What Kind of Business I Would Want to Open
I would want to open up an electronic repair and seller store, where we would repair
phones and electronic devices, and sell certain electronics and electronic parts.
I would make the business a corporation because:
-There is less tax I have to pay
-I would have limited liability
-I would have a big salary
-Corporate jet, Lamborghini, etc.
-Drivers to take me where I would want