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Business entities & Types of Businesses

Can you please help me define each of the following forms and address the advantages and disadvantages of each:
• Sole proprietorships
• Partnerships
• Corporations
• Limited liability companies
• What is the most appropriate form of ownership for an aggressive entrepreneurial firm?
Please include a reference so that I can expand on this topic. Thank you

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Hope this helps- please let me know if you have questions

Sole proprietorships: This is a business run by one person for his or her own benefit. It is the simplest type of business to set up and run. It is also the easiest type of business to shut down. The business and the business owner are treated as one, with all risks and liabilities of the business treated as the owner's personal liability. This includes taxes and negative factors such as lawsuits. Sole proprietors maintain separate financial records for their business and personal activities, but legally the two are merged. Ownership cannot be transferred. This form of business may be more difficult to raise capital, and typically involves personal guarantees with owners pledging their assets. The owner and management are one and the same.
Partnerships: A general partnership is an agreement between two or more people to carry out a business venture. Each person contributes to the venture in some way (this could be monetarily, or in the form of knowledge, property, skill or labor) and each shares in the profits and losses of the venture. In addition, each shares in the liability of the venture in terms of debts and legal issues. A partnership may be either limited or general. If it is limited, the amount of liability for each partner is determined by the percentage of investment they have in the venture. Paperwork must be filed with the state to verify a limited partnership. Also, partnerships must be terminated whenever more than 50 percent of the partnership interest changes hands. This can cause issues when trying to raise money. There is no separation between owners and management, like there is with corporations, which may lead to personal ...

Solution Summary

This detailed solution discusses the advantages and disadvantages of:
• Sole proprietorships
• Partnerships
• Corporations
• Limited liability companies
and picks the most appropriate form of ownership for an aggressive entrepreneurial firm. Includes APA formatted references.

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