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  2. Comparison of Business Structures
    AttributeSole ProprietorshipPartnershipLimited Liability Company (LLC)Sources
    DescriptionOwned by one personOwned by two or more peopleSeparate legal entity 1 2 3
    LiabilityUnlimited personal liabilityShared liabilityLimited liability protection 1 2 3
    TaxationPass-through taxationPass-through taxationPass-through or corporate tax 1 2 3
    ControlFull control by ownerShared controlFlexible management structure 1 2 3
    AdvantagesEasy to set up, full controlSimple to set up, shared responsibilityLimited liability, flexible management 1 2 3
    DisadvantagesUnlimited liability, hard to raise capitalPotential for disputes, shared liabilityMore complex to set up, state-specific regulations 1 2 3

    Learn more:
    www.sba.gov/business-guide/launch-your-business…
    www.netsuite.com/portal/resource/articles/busines…
    www.forbes.com/advisor/business/types-business-…
     
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