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When considering a business structure, you have three basic choices- sole proprietorship, partnership and corporation – each with it’s own advantages and disadvantages.
Business Structure Advantages Disadvantages
Sole Proprietorship Full Profits Personal liability
Partnership Easy to form Unlimited liability to all partners
Corporation Corporation protects you from personal liability Higher taxes
Subchapter S Corporation S corporation avoids double taxation penalty Limited to companies with fewer than 75 shareholders.
Limited liability Corporation Protects the partners against personal liability but passes tax income Guidelines are different in each state...
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