Visual 1

Good News, Bad News

Sole Proprietorships

Good News
Easily organized
Allows independent business activity
Ease in reporting taxes

Bad News
Unlimited liability

Partnerships

Good News
Easily organized (although somewhat more complex than a sole proprietorship)
Allows specialization
Ease in reporting taxes

Bad News
Unlimited liability
Chance for disagreements

Limited Liability Companies

Good News
Limited liability
Ease in reporting taxes

Bad News
More complex to organize than sole proprietorships or partnerships

Corporations

Good News
Limited liability

Bad News
Costly to form