The following is a brief description of these options along with some advantages and disadvantages of each. Every business and situation is different. You should contact our office or another attorney to discuss which form of organization would best serve your needs. Under sole proprietorship the owner maintains complete control and complete responsibility. All of the actions and liabilities of the sole proprietorship are attributable to the owner.
All income is treated as income to the sole proprietor for income tax purposes.
A partnership is the association of two or more persons to carry on a business for profit. No formal paperwork is required to create a partnership, however a detailed written partnership agreement is highly recommended. Absent agreement otherwise, all partners have equal rights in the management of the partnership and to all profits of the partnership. The major drawback of partnership is the fact that all partners are personally liable for the actions or torts of the other partners. A partnership provides no liability protection.