a) the complexity of the organization.
b) the cost of starting the business
c) the lack of limits on personal liability
d) the difficulty of distribution.
2006-11-09 01:36:48 · 4 answers · asked by egyptianqueen1987 1 in Business & Finance ➔ Small Business
b-COST! Especially taxes!
2006-11-09 01:39:20 · answer #1 · answered by life coach 7 · 0⤊ 0⤋
c) the lack of limits on personal liability
As a sole propietorship, any lawsuits against the company are lawsuits against you. If you lose a lawsuit, then you can lose your house, your car, and all of your other assets until you have paid for the damages.
A corporation on the other hand can (usually) only be sued for the assets of the corporation. Once those are done, it is over. The lawsuit cannot target the owners of the corporation. There is a concept of piercing the corporate veil to go after the owners, but that is usually done in cases where the owners knowingly conducted illegal business thru the corporation.
The downsides to a corporation are it is more complex, harder to start up, and the profits of the corporation get taxed, before they go to the owners of the corporation where the get taxed again.
2006-11-09 09:51:55 · answer #2 · answered by A.Mercer 7 · 0⤊ 0⤋
None of the above. The main disadvantage is the amount of time the business will demand may not commensurate with the time you are willing to invest. Running a business requires a certain personality... if you are deficient in this area you won't have a partner to fill this need.
2006-11-09 09:43:29 · answer #3 · answered by McDreamy 4 · 0⤊ 0⤋
E) No paid vacation.
2006-11-09 09:42:11 · answer #4 · answered by Kitty 6 · 0⤊ 0⤋