TYPES OF BUSINESS

OWNERSHIPS
CREATED BY: MIKE CULLIFORD
 SOLE PROPRIETORSHIP
ADVANTAGES
• Has complete control and decision-making power
• No corporate tax payments
• Minimal legal costs
 SOLE PROPRIETORSHIP
DISADVANTAGES
• Held personally liable for the debts and obligations of the business
• Has all responsibilities and business decisions
• Investors won't usually invest
 PARTNERSHIPS
ADVANTAGES
• Do not have to pay income tax
• Easy to establish.
• Increased ability to raise funds
 PARTNERSHIPS
DISADVANTAGES
• Partners are jointly and severally liable for the actions of other partnership
• Each partner is individually liable for the debts and obligations of the business
• Partnerships can potentially be unstable
 CORPORATIONS
ADVANTAGES
• Shareholders are not liable for any debts incurred or judgments handed down against the
corporation
• Raise additional funds by selling shares in the corporation
 CORPORATIONS
DISADVANTAGES
• Requires more time and money
• Governmental agencies monitor corporations
• Corporate profits may be subject to higher overall taxes
 FRANCHISES
ADVANTAGES
• Offers the independence of small business ownerships
• Business experience necessarily not needed
• Higher rate of success
• Established reputation and image
 FRANCHISES
DISADVANTAGES
• Entering into a formal agreement
• Agreements dictate how you run the business
• Restrictions on where you operate
• Performances by other franchisees may affect you