Ease of formation and simple structure. No double taxation. Owner receives all profits. Lack of continuity as a result of disability or death of owner. Owner may have limited managerial expertise.
All profit is taxed as personal income.
Most home-based businesses use the sole proprietorship form. It is simple, inexpensive, and requires less complex record keeping methods than the other forms of ownership. Partnership A partnership provides the opportunity to pool the capital and management resources of two or more individuals to conduct business. Two types of partnerships are the general and the limited. A general partnership is fairly easy to establish.