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Unformatted text preview: 2009-09-091FORMS OF BUSINESS OWNERSHIP2009-09-09Forms of Business Ownership2Forms of Business OwnershipThe chart below outlines the differences between sole proprietorships/partnerships and corporations.2009-09-0922009-09-09Forms of Business Ownership3Advantages and Disadvantages of Each Type of Ownership Advantages of a CORPORATION are limited liability (shareholders not being personally liable for corporate debts) and transferability of ownership. Corporations may receive more favourable tax treatment than other forms of business organizations, depending on the circumstances.Disadvantages of a CORPORATION are increased government regulations and the fact that corporations are taxed as a separate legal entity.2009-09-09Forms of Business Ownership4Advantages and Disadvantages of Each Type of Ownership (cont.)PARTNERSHIPS AND PROPRIETORSHIPSare easier to form (and dissolve) than corporations. Proprietorships and partnerships are not taxed as separate entities....
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