subject: Corporation VS Sole proprietorship [print this page] Corporation VS Sole proprietorship Corporation VS Sole proprietorship
Corporation advantages are very important. First there is a limited liability and if the business defaults owners of the business are only liable up to the amount of investment made in the business. It is easy to calculate taxes. With a lot of management it is not difficult to manage the affairs. It is very easy in case of a corporation to raise funds through IPO's (shares) or other means as well. There are problems with making and running a corporation as well. The first problem is that you usually aren't able to gather much money to form it initially. It takes a lot of requirements and legal documentation to complete and is under additional instructions of security and exchange commission if it has to go public. It is very difficult to manage this much amount of activity. And corporations can be bought easily by share holders. These are some of basic advantages and disadvantages of both corporations and sole proprietorship to help you make the right decision.
