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A sole proprietorship, a corporation and an LLC are three common entities that are employed by...

A sole proprietorship, a corporation and an LLC are three common entities that are employed by entrepreneurs when starting a business. When weighing the advantages and disadvantages of these three entities, which do you think is the more advantageous business formation for an entrepreneur? Why? Feel free to suggest an alternate business entity if you so desire, but be specific as to why your choice would be more advantageous.

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According to me, sole proprietorship is the more advantageous for business formation due to its simplicity and minimum documentation. For the small firms this is the least expensive business structure and as only a single person is involved in the business therefore legal requirement involve only obtaining the required licenses, registering the business name, and permits. Whereas, for corporation or an LLC, all the assest and wealth are linked to business without forming a separate legal entity. In the sole proprietorship entrepreuner do not face any tax penalties for dissolving the business.

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