Comparison
Chart
The principal advantages and disadvantages of the three most commonly used business organizations are as follows:
| Sole Proprietorship Advantages | Sole Proprietorship Disadvantages |
| 1.
Low start-up costs 2. Greatest freedom from regulation 3. Direct control by owner 4. Minimum working capital requirements 5. Tax advantages to small owner 6. All profits to owner |
1.
Unlimited personal liability 2. Lack of continuity 3. More difficult to raise capital |
| Partnership Advantages | Partnership Disadvantages |
| 1.
Ease of information 2. Low start-up costs 3. Additional sources of venture capital 4. Broader management 5. Limited outside regulation |
1.
Unlimited personal liability 2. Lack of continuity 3. Divided authority 4. Difficulty in raising additional capital 5. Hard to find suitable partners |
| Corporation Advantages | Corporation Disadvantages |
| 1.
Limited liability 2. Specialized management 3. Ownership is transferable 4. Continuous existence 5. Legal entity 6. Easier to raise capital 7. Unity of action account having centralized authority in board of directors |
1.
Closely regulated |