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Incorporate as a corporation or form a partnership?

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As a personal trainer I have decided to open an upscale health spa / resort and health club.
I need to determine the type of business organization I want to form: incorporate as a corporation or form a partnership?

1. What are the advantages and disadvantages of forming the business as a partnership and the advantages and disadvantages of forming as a corporation?

2. What are the differences between equity and debt financing, and what are the primary ways in which each would affect the future of a business.

Please provide sources

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Solution Preview

1. What are the advantages and disadvantages of forming the business as a partnership and the advantages and disadvantages of forming as a corporation?

Partnerships offer (your) business a distinct advantage in regard to the non-necessity to pay double taxes that are affixed to corporations as partnerships are able to avoid this by only paying taxes on their personal income. In addition, partnerships are able to maintain full control over their business as they are not required to share profits with shareholders, and are able to make decisions based upon their own inclinations as they don't report to shareholders or anyone else ...

Solution Summary

Incorporate as a corporation or form a partnership is examined. The advantages and disadvantages of forming the business as a partnership are determined.

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