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Which business form gives you the least liability exposure

Which business form gives you the lease liability exposure and why?

This question is in reference to the three types of business structures: sole proprietorship, partnership, and corporation.

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Hi there,

First, here is some basic info about the three types of business structures:

Sole Proprietorship:
A Sole proprietorship is a business which legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by a corporation do not apply. All debts of the business are debts of the owner. It is a "sole" proprietor in the sense that the owner has no partners. In some jurisdictions a business owned by a husband and wife jointly can still be considered a sole proprietorship, in others it would be considered a type of partnership.

A sole proprietorship essentially means a person does business in their own name and there is only one owner. Since the business is really just an extension of that person and not a new entity (like a corporation) any business debts are also personal debts. If the business were to get a judgement filed against it, it would be a problem for the owner. As a sole ...