Unformatted text preview: have to buy stocks to invest into the company. The stocks can be traded or sold off to others if you no longer want to be a part of the ownership. There are also different tax benefits and liabilities depending on which one you choose. If I was starting a business, depending on the type of business I choose to start would determine which of the three I would choose. If it was a small startup business then I would become a sole proprietor. With being a proprietorship, I do not have to report to anyone, share any profits, and I get some good tax benefits. Knowing I will be liable for all the debts of the company, eventually I would turn it into a corporation once we become big enough as a company....
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- Spring '10
- Business Law, Corporation, Types of companies, Legal entities