Rating

Comments

Sole Proprietorship

Difficulty getting financing

Maximum liability

Maximum ownership control

Minimum working capital required

Minimum regulation

Minimum start-up costs

Minimum continuity

No profit sharing

Tax advantages for owner

Partnership

Difficulty getting additional financing

Easily formed

Limited regulation

Maximum liability

Minimum continuity

Minimum start-up costs

More sources to raise capital

No complete control

Possible tax advantages

Responsibilities

Risk in choosing partners

Sharing of management

Corporation

Attractive to investors

Continuity ad infinitum

Double taxation

Extensive record keeping

Legal entity

Legal restrictions

Management expertise

Maximum regulation

Maximum start-up costs

Minimum liability

Possible tax advantages

Transferable ownership

Total points

Sole proprietorship

Partnership

Corporation