major business entity forms

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The discussion shows that an entrepreneur has to consider several options before deciding on the type of business entity to establish. Each type of business entity has its advantages and disadvantages. Availability of enough capital is one of the most important factors that entrepreneurs have to consider. Business entities like sole proprietorship have higher flexibility in terms of raising capital. On the other hand, corporations have tough rules regulating how capital is raised and the number of shareholders that can be part of the company. Protection from liabilities is another critical factor that any entrepreneur should consider. On the other hand, corporations, limited liability partnerships, and limited partnerships separate the owners from the management (Anon, 2018). This shields the business owners from loss because the business exists as a separate legal entity. Sole proprietorships and general partnerships subject the owners to vulnerability over legal consequences over management decisions.
Other factors that influence the kind of business entity an investor can establish include regulations governing how ownership can be transferred and the ease of formation. This is important for an entrepreneur who may have aspirations of selling the business after some period of time. Corporations provide an easy way of transferring ownership of the business through the sale of company shares. Partnerships require t…