Business entities

PoB review

LLC

Advantages: Combines personal liability protection with flexible management and taxation options.

Disadvantages: Usually require more paperwork, fees, and ongoing requirements than a sole proprietorship or partnership.

S-Corp

Advantages: Owners receive liability protection while avoiding corporate-level income tax on qualifying profits:

Disadvantages: More rules, paperwork, and ownership restrictions than simpler business structures.

Corporation

Advantages: Lots of resources (Capital/Human) and limited liability.

Disadvantages: Expensive and complicated to start, more government regulations, large teams lead to disagreements and long decision making process.

Sole proprietorship

Advantages: Easy to start, get all the money, full control.

Disadvantages: Unlimited liability, not as much experience, could be risky.

Partnership

Advantages: Combined expertise, easy to start, shared resources.

Disadvantages: Shared profits, disagreements, responsible for each other’s debts.

Co-op

Advantages: Members share control and benefits, giving people who use or work for the business a direct voice.

Disadvantages: Decision-making can be slower because multiple members participate in major decisions.