Unformatted text preview: There are also tax advantages in becoming a partnership over incorporating. A proprietorship or sole proprietorship has the advantage of being simpler and easier to initially set up. Control of a sole proprietorship is maintained most likely by the founder of the company. In starting a new business, I would choose a corporation. I would form a corporation because I would need to raise money for my venture and selling stocks to friends and investors would raise the necessary capital the corporation would need to get started. I would also want the limited liability of a corporation so that in the case of the company incurring bad debt or liabilities from lawsuits or litigation, my personal assets would be protected from any efforts to collect against the corporation. I would also be able to become an employee of my own corporation and be entitled to compensation and benefits; therefore I could get paid while starting my business!...
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- Spring '10
- Business Law, Corporation, Legal entities