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THESIS. Business can operate under three legal structures which are: Sole-proprietorship, Partnership and a Corporation. The understanding of these is crucial to the decision of which structure is the best one for the entrepreneurs business. In a sole-proprietorship, the owner retains total control of all the decisions that need to be made. The ability to raise capital is limited by the financial resources and the credit worthiness of the individual owner. The owner has the ultimate liability for all the actions and debts of the business. A sole-proprietorship is not a separate taxable entity. The individual owner reports business revenue, expenses and net income (or loss) on his/her individual tax return form...
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