Answer:
Sole proprietorship:
Advantage: is very easy to establish, and gives total control to the owner.
Disadvantage: the sole owner is personally liable in case of bankruptcy.
Partnership:
Advantage: involve two or more people, meaning that capital is likely to be higher. Gives tax benefits to partners.
Disadvantage: partners are also personally liable in case of bankruptcy.
Corporation:
Advantage: a corporation is legally, a separate entity from its stockholders, meaning that stockholders are not personally liable in case of bankruptcy. Corporations can also grow to include a large number of people (stockholders).
Disadvantage: they are more difficult to start than other types of business entities, and are more closely inspected.
Limited Liability Company:
Advantage: they combine the pass-through characteristics of partnerships with the limited liability of corporations.
Disadvantage: they are not necessarily as profitable as corporations.
