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Definition - is a arrangement between two or more individuals who share management and profits.

Positive: There is an ability to raise funds when there is more than one owner.
Easy to establish.

Negative: That every general partnerships, they each have a liability for businesses and if one doesn't do the work then both of them will fail.
the reporting requirements can be complex.

Examples: Apple + Hermes. Image Credit: Apple
Balmain + H&M. Image Credit: H&M

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Corporation and Limited  Liability Company

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Corporation and Limited  Liability Company

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Def:A form of business operation that declares the business as a separate, legal entity guided by a group of officers known as the board of directors.

Positives:a corporation's shareholders are not liable for any debts incurred or judgments handed down against the corporation.
Corporations may be able raise additional funds by selling shares in the corporation.

Negatives: Double taxation.
it may pay taxes on its income, after which shareholders pay taxes on any dividends received, so income can be taxed twice.

Examples: Google , Microsoft Corporations

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Definition - is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

Positives: Proprietor has unlimited personal liability for the obligations of the business.
They are easy to form, and the owners enjoy sole control of the business profits.

Negatives:Your small business, in the form of a sole proprietorship, is personally liable for all debts and actions of the company.
the biggest of which being that the owner is personally liable for all business losses and liabilities.

Examples: such as a single person art studio or a local grocery store