Sole Proprietorship Sole proprietorship is the most common form of business in the United States. It is a relatively simple way for an individual to start a business since legal costs and business requirements are minimal, and the owner has complete control over the business. Though a sole proprietor is not responsible for any corporate tax payments, the owner is responsible for taxes incurred on the income generated from the business as part of his or her personal income tax payments, and personally shoulders any other risks or obligations. A sole proprietor may also choose to file their business under a fictitious business name or a DBA (doing business as), allowing him or her to operate and market the business under a more typical …show more content…

6. Location One advantage to a general partnership is that it can be operated from any state, hence providing flexibility in targeting markets outside of the state where the partnership is filed. However, it may be necessary to file for a "Doing Business As certificate" which can usually be done at the county clerk's office. Limited Partnership Limited partnership can be created between at least one general partner and one limited partner. Typically the limited partner is an investor of the capital needed for the venture without the daily responsibilities of operating the business and liabilities a general partner may have. Hence, a limited partner does not have equal say in making business decisions or voicing how the business should be run. Limited partnerships may attract investors who want to be part of a business venture but does not want to bear any personal liabilities, other than the capital invested, incurred by the business. In some instances, the limited partner may have a difficult time withdrawing his or her investment. Although a limited partner will have limited say on business decisions, if the business succeeds, the limited partner can reap the profits with minimal effort and risk. Characteristics to keep in mind about Limited Partnership 1. Liability Limited partners are protected from personal liabilities. In most cases, limited partners are only at