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Sole Proprietorship: Sole proprietorships are businesses that are owned and operated by one person. The business and the owner are one and the same, as there is no legal separation between the two. The owner would only have to register as a business if he were to operate under a fictitious name or if they provided services requiring a license.

* Liability: As there is no legal separation between the owner and the business, 100% of the liability is on the owner. He or She would be responsible for all debts, accidents, losses, etc. * Income Taxes: Aside from having to file a Schedule C, the owner would file income taxes normally. Because the owner and the business are one, all profits or losses are reported through their personal income tax forms. * Longevity or Continuity of the Organization: The continuity of a sole proprietorship hinges on the wellbeing of the owner. The company and the owner are one, so neither can exist without the other. In very rare circumstances, proper legal documents can keep the company alive in the event of the owner’s death. However, it is unlikely to continue in most cases. * Control: Sole proprietorships are convenient because they provide the owner with full control. The owner can make any decision necessary without having to get any approvals or permissions. * Profit Retention: Profits are normally kept by the owner and can be put back into the business for growth or kept for personal gain. * Location: While the sole proprietor would have to file a DBA to operate under a fictitious name, there are no restrictions on locations for sole proprietorships.

* Convenience or Burden: The conveniences of a sole proprietorship include an extremely simple decision making and startup processes. However, they do have the added burden of full liability for the owners.

General Partnership: General partnerships

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