Assignment Small Business Analysis

Small Business Analysis Name Institutional affiliation Small Business Analysis Introduction There are three major forms of business namely sole proprietorship, partnership or a corporation. The main difference is the liability of the owners. The number of sole proprietorship is much higher than partnerships and corporations. However, corporations have much more assets and revenue than the sole proprietorships combined. Individuals must understand the differences between the various forms, and their merits and demerits before selecting the appropriate form. Analysis of forms of business organization Sole proprietorship The sole proprietorship is a business owned by one individual who is legally not separated from the business. Unlike other forms, the sole proprietorship is easy to create. In the United States, the owner needs just a business license. The first reason for establishing this form of business is its simplicity (Miller Jentz, 2008). The owner can start with little capital, expand when he wishes and dissolve the business. Unlike a partnership or corporation, the sole proprietor makes all the decisions without having to consult other parties. Thirdly, all profits of the business flow to the owner. Finally, the sole proprietor files the tax return for his business as part of his personal income. However,