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Business Forms Worksheet

There are seven forms of business: sole proprietorship, partnership, limited liability partnership, limited liability company (including the single member LLC), S Corporation, Franchise, and Corporation.

1. Research and provide three advantages and three disadvantages for each business form.

2. Provide a 100- to 200-word summary in which you provide an example business that you would start for each form. What is legally necessary to file in order to form that business? Discuss at least one of the advantages and one of the disadvantages of that form.

Sole Proprietorship

Advantages

1. Owner makes all decisions

2. Owner hires employees

3. Less complicated to start-up

Disadvantages

1. If owner dies, the company does as well

2. Owner responsible for everything

3. Self-employment tax

Summary
Owner has a lot of power when opening a Sole Proprietorship. Human Resources is not needed since the
|Can hire employees and make decisions for the business. It is easier to start up. Tax benefit is claiming |
|Self employment; not including deductibles or premiums in Health insurance. The business closes once |
|The owner is deceased. |
| |
| |
| |
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