Question

If you were to start a business today, what business form would you choose if considering a corporation, partnership, LLC, or Sole Proprietorship? Provide at least three reasons for your selection.

Answer 1

Selecting the form of business depends upon multiple factors like the scale of business, number of initial investors/partners available to do the business, industry factors, growth prspects etc.

Of all these options available, Sole Proprietorship is the easiest to form and operate, due to the following reasons:

• No incorporation forms and formalities are required to be fulfilled ot sumbitted to any guiding body. You can just start your business under your name.
• No double taxation as in case of corporates. The entire income of sole propretorship firm is taxed in the personal return of the propretor, the firm does not have to pay any taxes.
• The propretor has the complete control over the management of the firm. The owner does not have to depend on others to agree with his decisions to take any action concerning the business.

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