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Lit - Task310.2.1-05

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Lit - Task310.2.1-05
SOLE PROPRIETORSHIP:
A Sole Proprietorship is a form of business that is owned and operated by one person. A sole proprietorship can be started with no state filing that is required. The sole proprietor has unlimited responsibility for all business gains, losses, and debts. A sole proprietorship does not distinguish between personal and business assets. * Liability: A sole proprietorship has unlimited liability. This can affect all the owners’ assets, both business and personal. * Income Taxes: A sole proprietorship does not require the owner to file business taxes separately. Business revenue or loss is filed on owners yearly tax filings. * Longevity / Continuity: A sole proprietorship does not provide a business longevity or continuity. If the owner becomes ill the company can be brought to a standstill, and the business will cease to exist at the death of the owner. * Control: The owner of a sole proprietorship business has unlimited control over all aspects of the business. * Profit Retention: The owner of a sole proprietorship retains all the business profits. * Location: A Sole Proprietorship must file appropriate business licensing forms. There are no extra requirements for moving or adding a location for a sole proprietorship. * Convenience / Burden: A sole proprietorship is easily created and maintained. However, it requires the owner to carry the burden of all of the businesses financial outcomes.

GENERAL PARTNERSHIP:
A general partnership is the most basic partnership which is created by an ownership agreement between two or more people in an unincorporated business. * Liability: Each partner can be held jointly and personally liable for all debts and taxes. * Income Taxes: A general partnership requires owners to file any revenue on their respective personal business taxes. * Longevity / Continuity: A general partnership will end if any partner withdrawals or upon a partners death. Unless the
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