1) The main types of businesses in the USA are sole proprietor, business partnership, corporation and LLC.
2) Sole proprietorships have certain advantages over other forms of business organization. They are flexible, since owners can make decisions quickly without having to consult others. By law, individual proprietors pay fewer taxes than corporations. And customers often are more attracted to sole proprietorships. This form of business organization has some disadvantages, however. A sole proprietorship legally ends when an owner dies or becomes incapacitated. Also, since sole proprietorships generally are dependent on the amount of money their owners can save or borrow, they usually lack the resources to develop into large-scale enterprises.
3) The problem is that each member of partnership is liable for all of a partnership's debts, and the action of any partner legally binds all the others. If one partner squanders money from the business, for instance, the others must share in paying the debt. Another major disadvantage can arise if partners have serious and constant disagreements.
4) There are two main types of for-profit corporations, known as a C corporation and an S corporation. While most corporations are set up as C corporations, some elect to function instead as an S corporation in order to avoid double taxation.
5) The corporation is ruled by shareholders.
6) A limited liability company is new type of business in the USA, but it is very popular. It is often more flexible than a corporation and it is well-suited for companies with a single owner.
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