Proprietorship vs. Partnership

A Proprietorship:

> A business owned by one person
> It is easier and less expensive form of a business
> Are in control of making decisions
> Receive all income generated by the business to keep or reinvest

A Partnership

> A business of where two or more persons combine their assets and skills.
> Are personally liable for business debts and liabilities
> Partners pay only personal income tax
> Partners have unlimited liability
> Lack of investment flexibility