Title:Business structures
Issue date:2016-12-15

Sol proprietorship

 

Registration: $36

Advantage:

  • relatively low start-up costs
  • greatest freedom from regulation
  • owner in control of decision making
  • minimal working capital required
  • tax advantages to owner
  • tax advantages to owner
  • all profits to own

 

Disadvantage

unlimited liability

lack of continuity

Divided authority

اDifficulty raising additional capital

Hard to find suitable partners

Possible development of conflict between partners

 

Partnership

Advantage:

Registration: $43

  • Ease of formation
  • Relatively low start-up costs
  • Additional sources of investment capital
  • Possible tax advantages
  • limited regulation
  • broader management base

 

 

Disadvantages

  • unlimited liability

lack of continuity

Divided authority

Difficulty raising additional capital

Hard to find suitable partners

Possible development of conflict between partners

 

 

Company

Incorporate

Registration fees: $400 to $2000

:Advantage

limited liability

specialized management

ownership is transferable

continuous existence

separate legal entity

possible tax advantage

easier to raise capital

:Disadvantages

closely regulated

most expensive form to organize

extensive record keeping necessary

double taxation of dividends

possible development of conflict between shareholders and executives