Exploring Business Structures: Sole Proprietorships and Partnerships

Group 1

• Limited liability

• Owned by a single individual

• Requires a formal agreement

• Double taxation

• Easier to raise capital

• Simpler tax filing

• Complete control by one person

• Limited liability

• Equally among partners

• According to the partnership agreement

• Based on seniority

• Only to the managing partner

• Complex formation process

• Unlimited liability

• Shared decision-making

• Double taxation

• By the death of a partner

• By a sole proprietor's decision

• By government intervention

• By a shareholder vote

• Corporation

• Sole proprietorship

• Partnership

• Limited Liability Company (LLC)

• Sole proprietorship and partnership

• Corporation

• Limited Liability Company (LLC)

• Non-profit organization

• Details on profit sharing

• Stock issuance procedures

• Franchise fees

• Employee benefits

• Desire for complete control

• Need for shared liability

• Requirement for a large capital investment

• Interest in issuing stock

• Access to more resources and skills

• Simplified tax structure

• Limited liability for all partners

• Easier to sell ownership shares

Group 2