Introduction Business is a very key activity in everybody’s determination in attaining the financial break through. This is because it is a common knowledge globally that one cannot immerse wealth by depending on his or her monthly salaries. Worldwide all rich people depends on business in their increased accumulation of wealth. This has necessitated the need to have a good knowledge of the various forms of the business in order to enable those who are dreaming of making fortune in business. In most cases it has been said that majority of people all over the world usually find themselves undertaking sole proprietorship form of business because they do not have relevant understanding of the functioning of the other forms of business. The proper knowledge will help people to make proper decisions when investing in various business undertakings. When making such decisions one should even take in to consideration the future plans which he or she has on the business. For example one may want to expand his or her own business and he or she has no sufficient financial resources to do so and thus in such case he or she may opt to run a corporation since a lot of external investors have a lot of trust on corporations unlike the other forms of business. Other implications a part from the financial resources like the legal impacts should also be carefully considered to avoid liabilities which come along as people seek compensation for damages caused by business to its employees or the outsiders which con accumulate to high levels which can even lead to sad and abrupt collapse. In our case we are going to look at the description of various forms of business ownership and see how we can advise business people who wants to make some crucial decisions which pertains their business which may include change in the form of existing business (Casmer, 2006, p. 1). The various forms of business ownership which we are going to address include the sole proprietorship, general partnership, limited partnership, c-corporation, s-corporation and the limited liability company. Sole proprietorship This the most commonly practiced form of business among many people of the world. It is highly preferred because it is very simple in nature of their operations. This encourages a lot of people to run sole proprietorship because it is so simple in its formation to the extent that those who are employed can operate their sole proprietorship business after their working hours. In this form of business the business is owned by one person who enjoys all the rewards and also the losses which may be incurred in the course of running the sole proprietorship business. This form of business can also include the hawkers, people undertaking consultation and contractors among many others. It is also worthy to note that this form of business does not have distinction from its owner in terms of legal matters thus no separate legal entity (Casmer, 2006, p. 1). This form of business ownership has several advantages and at the same time some disadvantages as explained below. Advantages One of among the various advantages of a sole proprietorship is that it does not require a lot of complicated tax preparation. Here one only needs to declare his or her income in tax returns along with the profit acquired by the business and even the losses if any loss was incurred. It is very clear that the individual’s income is treated the same way as the business earnings and also the impacts of taxat