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Sole Propreitorship & General Partnership


Submitted By venkat9
Words 714
Pages 3
Sole Proprietorship

• Liability: Unlimited Liability, Liability Extends beyond Business Assets to Personal Assets and would also include the future earning potential of the business owner beyond this particular business.
• Income Taxes: The Income from Business would be treated as personal Income to owner. Taxes need to be paid accordingly, no double Taxation.
• Longevity or Continuity of the organization: The Business is same as owner and would exist for the life of the owner and would have no existence after the demise of owner. Continuity is not possible after the death of owner.
• Control: Autonomy, since Business is Owner the owner has the complete Control. The owner has complete ownership on business finances.
• Profit Retention: The Owner keeps the complete profit; there is no need for him to share with others. The Return on investment is high.
• Location: The Business can be moved or expanded into any state. There is no need to create any separate legal entity or file any new documents in new state, except for dba filing as needed.
• Convenience or Burden: There is no additional requirement of meeting, reporting or other regulatory requirements to run the Business, except for any business related license as needed.
General Partnership

• Liability: Unlimited Liability, for all business debts and obligations, partners are jointly and severally responsible. Liability Extends beyond Business Assets to Personal Assets of Partners and would also include the future earning potential of the business partners beyond this particular business.
• Income Taxes: Disregarded entity for tax purpose.The Income flows from Business to partners, would be treated as individual personal Income to partners as per their share. Taxes need to be paid accordingly, no double Taxation.
• Longevity or Continuity of the organization: The business is dissolved

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