What are the advantages of forming a business as a corporation? Forming as a sole proprietorship...

Question

Question

What are the advantages of forming a business as a corporation? Forming as a sole proprietorship or partnership?

Answer 1

Answer #1

Advantages of forming a business corporation

1) it can be viewed as an easy way to raise capital as it can issue stock bonds etc

2) There is no limited life of business as the death of an owner transfers the ownership on the whole.

3) It has a limited liability where the shareholders are not responsible for the debt.

Advantages of forming a sole proprietorship or partnership

1) Ease of business is the main advantage as these modes include least amount of paperwork and also the legal work.

2) Profits are directly shared where the profits are divided directly after paying the tax wothouw much complications

3) There are relatively few regulations.

4) There are even few legal obligations that are involved if the business is to be discontinued.

Answer 2

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