Infographic Template Galleries

Created with Fabric.js 1.4.5 Sole Propreitorship Advantages1. owned and ruled by one person 2.Owner receives all profits3. Allows a lot of flexibility for the owner4. Easy to organize5. Needs small amount of capital to start business Disadvantages1. Limited resources2. The owner is responsible for paying all damages and debts of business3. Business depends on the health of owner4. Banks are reluctant to grant loans to single proprietors because of small assests and high mortality rate Partnership Advantages1. Easy and inexpensive2. majority of time is spent developing the partnership agreement3. Each partner equally invests in the business so you don't have to invest all your money on your own4. They can attract a lot of employees Disadvantages1. Partners are not liable for their own, but also for their business debts and decisions2. Partners have to consult each other in decision they make for business3.Partners have to share all their success and profits from the business with their other partners Types of Ownership in Business Corporation Advantages1.When it comes to business debts, shareholders personal assets are protected2.Easy ability of generating capital through the sale of stock3. Owners of a corporation only pay taxes on corporate profits paid to them like salaries, and bonuses. Other profits are awarded a corporate tax rate (usually is lower than a personal income tax rate).4. Corporations are able to attract high quality employees because they offer competitive and the potential for potential ownership through stock. Disadvantages1. Corporations are more expensive thanother businesses, it costs start-up operating and tax costs2.Sometimes corporations are taxed twice when the company makes a profit and a second time when dividends are paid to shareholders.3, Corporations are highly regulated by federal, state and sometimes localagencies.4. They have more recordkeeping burdens Limited Liability Propreitorship Advantages1.Members are protected from personal liability for business decisions and actions of the Limited Liability, this means that if the company incurs debt or is sued, members personal assets are usually exempt.2.There is less start up paperwork than a corporation, and the start up cost is smaller.3. There are fewer restrictions on profit sharing, it's up to members to decide who has earned what percentage of the profits and losses. Disadvantages1. In many states when a member leaves an Limited Liability Company, the business is dissolved and the members must fulfill all remaining legal and business obligations to close the business.2. Members of an Limited Liability Company are considered self employed so they must pay the self-employment tax contribution towards Medicare and Social Security and the entire company income is subject to this tax.
Create Your Free Infographic!