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Definition
A sole proprietor is an
individual who owns an
unincorporated business on
his or her own.

Advanatges:
1. fewer business fees
2. easy tax preparation

Disadvantages:
1. unlimited liability
2. risks of wrong decisions

Real Example:
Mcdonald’s

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Definition:
General partnerships are
formed when two or more
people, known as general
partners, enter into an
agreement to do business for
profit.

Advantages:
1. sharing the burden
2. easy to establish

Disadvantages:
1. emotional issues
2. higher taxes

Real Examples:
Red bull & Go pro

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Definition:
A limited liability company
(LLC) is a type of business
structure that provides
limited liability and
pass-through taxation.

Advantages:
1. flexible management
2. easy to form and maintain

Disadvantages:
1. higher taxes
2. limited life

Real Examples:
Apple & Nike

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Definition:
An S corp, sometimes known
as a S corporation, is a
business entity that can
transmit its taxable income,
credits, deductions, and
losses straight to its
shareholders under the tax
code.

Advantages:
1. limited liability
2. one year of taxes required

Disadvantages:
1. limited to 100
shareholders
2. only one class stock

Real Example:
XYZ Inc .

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Definition:
A non-profit organization is
group for purposes other
than generating profit and in
which no part of the
organization’s income is
distributed to its members,
directors, and officers

Advantages:
1. makes a difference
2. can receive government
grants

Disadvantages:
1. depends on grants and
donations
2. all profits remain within
the organization

Real Example:
American red
cross

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Definition:
an independent legal entity owned by its shareholders

Advantages:
1. Great for equity financing and attractive to investors because of the well-defined ownership, management and tax structure.
2. It can have an unlimited number of owners and multiple classes of stock.

Disadvantages:
1. Expensive to start
2. The primary drawback of owning a C corp is the tax treatment.