What are the main differences and what are the advantages & disadvantages of each when starting a business?
2006-07-31 21:56:47 · 7 answers · asked by The_Cat_77 2 in Business & Finance ➔ Small Business
It's all depend on where you are and what would be advantageous or not to you. I posted some links below that should assist you further.
Hope that helps! I wish you much success & happiness in all your ventures!
2006-08-01 02:56:36 · answer #1 · answered by TM Express™ 7 · 1⤊ 0⤋
That depends entirely on the laws in the jurisdiction in which we reside. In the Uk the only one with real clout is the LLC. Basically in a LLC we have more safeguards. Say an employee goes nuts and destroys someone's stuff; well with a LLC then we're not legally held responsible. So, the Proprietorship and Corporation would be LLC's too. There may be tax breaks and things for the Proprietorship and Corporation but by the time we're talking in that kind of money then our accountant will tell us all that. For now just safeguard yourself against things outside your control.
2006-07-31 22:09:36 · answer #2 · answered by Anonymous · 0⤊ 0⤋
With SP's the own is responsible for all of the business's liabilities. For example, you own the local dog groomer business and someone slips on the ice on your sidewalk. You will be the plaintiff in the lawsuit in which all your assets can be held for damages.
With Corp's, there is a limit to the connection between you and the business. For example, same scenario, you AND your business will be sued. This mean some of your assets and some of the assets of the business can be held for damages.
With LLC's there is no connection between the owners and the business. The dog groomers shop get sued and only its' assets can be held.
2006-07-31 22:10:12 · answer #3 · answered by Steve N 3 · 0⤊ 0⤋
- = negative
+ = positive
Sole propretorship:
- Unlimited liability -
- Tax benefits +
Corporation
- Limited liability +
- Double taxation _
LLC
- Limilted iabilty +
- Heavier tax than sole proprietorship -
-
2006-07-31 22:04:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋
mostly tax and financial liabilities. they very from state to state. talk to an accountant or attorney where you live.
If you want to incorporate, try Nevada.
You can do that from any state and save.
2006-07-31 22:06:23 · answer #5 · answered by getit 4 · 0⤊ 0⤋
not sure. 9-35pm 10 points well done.
2006-08-02 05:38:24 · answer #6 · answered by penguin 2 · 0⤊ 0⤋
check this site: (quite long... hehehe :) just copy and paste...
http://books.google.com/books?id=nS8l2TEuZ30C&dq=accounting+(sole+proprietorship,+partnership,+corporation)+advantages+and+disadvantages&pg=PA107&ots=9PWhk66_U6&sig=cScBW4ogjQGEmZpbseh-EPKA6mc&prev=http://www.google.com/search%3Fhl%3Den%26q%3Daccounting%2B(sole%2Bproprietorship%252C%2Bpartnership%252C%2Bcorporation)%2Badvantages%2Band%2Bdisadvantages&sa=X&oi=print&ct=result&cd=1
you could also try wikipedia.....
2006-07-31 22:02:04 · answer #7 · answered by judy 3 · 0⤊ 0⤋