(1) creation and maintenance, (2) continuity (3) ownership and control (4) personal liability (5) compensation & division of profits and (6)...
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I am requiring help evaluating the following six factors: (1) creation

and maintenance, (2) continuity (3) ownership and control (4) personal liability (5) compensation & division of profits and (6) taxation. The entites that I am trying to evaluate are Sole Proprietorship and Partnership.


THE DIFFERENCES ARE-
1) Creation and maintenance: - Sole proprietorship is created by and maintained by an individual it is easier to form, as no such formalities are there to form it. There is ease of formation and closure.
Whereas in partnership at least two people should be there to form it and if they wish to register under the law they can as there is no compulsion for that.
2) Continuity: - sole proprietorship business can come to an end if there is death , insolvency , insanity of the owner. And in partnership if there is death, insanity, insolvency of any of the PARTNERS then either the business may come to the end or other partners may wish to continue if they want to by signing new agreement.
3) Ownership and control: - sole proprietorship is owned and control by an individual who has formed it. And partnership is owned and controlled by all the partners involved in the partnership.
4) Personal liability: - in both sole proprietorship and partnership personal liability of the owner and partners are unlimited as their personal assets can be sold to recover the debts of the business.
5) Compensation and profit: - in the case of sole proprietorship if owner has appointed any worker he should be compensated and all the profit is of the owner only. whereas in partnership profit is shared equally among the partners or in the ratio of their invested capital.
6) Taxation: - in sole proprietorship owner must pay the self-employment tax and in the case of partnership, tax is equally divided among the partners.


It is still unclear to me how the 6 factor apply to the two entites and what the advantage as well as disadvantages would be.

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