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  • Dkonara921 replied to the topic Types of Corporations in the forum Business 101 7 years, 3 months ago

    If I had to choose, I would pick a General Partnership simply because ownership is shared between at least 2 or more people. This is particularly useful because work and management would be easier if it was divided. There is a lot of risk in having to do all of the work alone and it can become overwhelming. Some of the major advantages of a GP are that such a business is easy to start and that all business losses will not affect only one person. The losses would be socialized between the business owners. Furthermore, the owners can deduct their business losses on their respective personal tax returns. There is very limited government involvement since the business is not required to be registered with the state and there is very limited paperwork that must be completed and filed with the government. Some of the major disadvantages to creating such a business include: each employer is personally liable for business losses; one owner can suffer due to negligence of another and obtaining a loan becomes very difficult. A loan would not be required if the owner has personal funds to invest in the business initially. An agreement can be made between the owners which would describe how the work is to be shared. The losses would be shared by all owners but it would be less severe than if the business would is owned by only one individual. Although the disadvantages can be damaging to the owners, many of them can be easily overcome.