Question

A sole proprietorship, a corporation (Subchapter S and Subchapter C) and an LLC are three common entities that are employed by entrepreneurs when starting a business. When weighing the advantages and disadvantages of these three entities, which do you think is the more advantageous business formation for an entrepreneur? Why? Feel free to suggest an alternate business entity if you so desire, but be specific as to why your choice would be better.

Answer 1

Answer:

The more advantageous business formation for an entrepreneur is:

A sole proprietorship.

Explanation:

Easy to start and simple to operate is the sole proprietorship, suitable for an innovative entrepreneur.  It provides a better option for a low-risk business, with no additional taxation of income.  Since an entrepreneur creates a new business, bearing most of the risks and enjoying most of the rewards, the sole proprietorship form of business provides the best starting point before he or she can join with others.