LIABILITY – Sole proprietors and the business are connected if the business loses profits so does the owner. Also if the business gets sued it is the owner that fully liable.
INCOME TAXES – The owner pays taxes on his or her individual income tax return. Federal income tax does not apply however self employment tax does.
LONGEVITY/CONTINUITY – The business will continue until the owner decides to keep it running, sell or dies. If the owner dies the assets belong to the owner’s estate and any depts. will be taken from the owner’s estate.
CONTROL – The owner has full control and can buy, sell or shutdown as he chooses.
PROFIT RETENTION – The owner keeps the profits and reversed all of the depts.
LOCATION – Regarding location there is only the need to apply for permits or other county or state licenses in the location that the business is moved.
CONVENIENCE/BURDEN – Every aspect of the business is sole responsibility of the owner. Registration and application for permits must be done and owner is responsible for doing so. There is no need state level requirements for running a sole proprietorship.
LIABILITY – The Partners have responsibility for based in the amount of investment in the company. Both partners are responsible for each dept and contract even though the other partner may be the one that caused the dept. Both partners equally share in management decisions, profits, and losses based upon their investment.
INCOME TAXES – Like a Sole proprietorship the profits are claimed on each of the partner’s individual tax returns. The advantage of this is that the profit is taxed once rather than twice like corporations when dividends are distributed.
LONGEVITY/CONTINUITY – Can continue with one partner leaving the company however all percentages of the...