Chapter 5 Discussion Question Types of Organization Discuss the differences between a sole proprietorship, partnership and corporation

There many ways one can form a business. This depends on the amount of revenue one is expected to earn and how big the business is.
A sole proprietor is a one owner DBA (Doing Business As). Meaning they are liable for all expenses and earning their business incurs. An advantage for this is that a sole proprietor gets to keep all its earnings, and it is a good Idea to start a business adventure that not expected to earn an extensive amount of moneyer. Otherwise the downside can me many, for example all income generated the sole proprietor has to pay taxes on, that’s state, federal and unemployment tax as an employee and as an employer. Also, the other downfall to creating a business as a sole proprietor, means that the owner and the business are the same entity.
Forming a partnership means, there is an agreement between two or more people to oversee the operations of a business. This means that all member will be liable for all company loss and earnings. One downside to this is that if one partner decides to leave, the person who remains will be held liable for all debts also one person will never have single control of the business.
I believe as a small business the best thing to do is to turn the company into a corporation. A corporation allows the owner to have a limited liability, they are only responsible for that they have invested in the company. Owner can transfer the company at any time. There are also some tax advantages at the end of the year.