ABSTRACT
There are four forms of operation to choose from: sole proprietorship, partnership, corporation, and an “S” corporation. Each has its advantages and disadvantages.
This is a business owned by one person. The advantage is that one person has complete control of the business. It is the easiest form of business to start. It can be set up and run any way the proprietor wants. The major disadvantage is that the liabilities and obligations of the business belong to the sole proprietor alone. The sole proprietor has personal liability for all business debts. If the business fails, it can bring financial ruin to personal finances.
