Relative Advantages of Different Form of Business

SOLE PROPRIETORSHIP

• Lower taxes since taxed on individual basis.
• Impossible to transfer ownership.
• Unlimited liability.
• Appropriate for small or family business.

PARTNERSHIP

• Lower taxes since taxed on individual basis.
• Difficult to transfer ownership.
• Liability - some will be limited, others unlimited.
• Appropriate for professionals.

COMPANY

• Flat tax rate.
• Easier to transfer ownership.
• Limited liability.
• Appropriate for larger business.