Explanation:
Some of the various forms of business ownership include:
- partnership
- sole proprietorship
- limited liability company
The benefits of establishing a company (limited liability company):
- owners asset are separated from any liability the company incurs > in sole proprietorship the owners personal asset can incur liability.
- excluded from federal income taxe.
The challenges:
- requires high setup cost > this is not the case with sole proprietorship.
- raising capital for operations is diffficult
