Choosing the right form of business ownership is important because the form of business ownership you choose will determine how your business is organized, how the money that flows in and out of your business is handled, and how your business is taxed. Some of the advantages and disadvantages of each form are listed below.
Sole Proprietorship: It is the easiest form to set up, and the owner solely controls the business. However, there is unlimited liability, and it can be hard to raise capital.
Partnership: There is shared risk and shared management. However, there are risks of conflict between partners, and all decisions must be made together.