So what is the best business set up? There is no best form because it depends on your objective the nature and type of the business your product or service the capitalization and the market that you want to serve. If you want to do it alone then sole proprietorship is right for you. As a sole proprietor you own the business yourself and you take all the profits and absorb the losses. This is because the business is you. Another thing is that the growth or failure of your business is entirely up to you.
Planning is an important aspect of creating business forms. It is important to plan what exactly the forms will be used for. There is certain criteria that should be considered. How important is the form? What specifics need to be addressed in the form? A business legal form is usually legally binding so being sure that the form fits all the local rules and requirements is also very important. Coming up with several prototypes is typical when planning a business form. Generating the forms than reviewing the finished product is also a common practice. Ideas during the planning stage can come from different sources. There are a lot of online websites that will provide a sample of various forms it violates copyright laws to use the form verbatim in most cases but looking at the form and using the same format is not a violation and there may be some good ideas that will inspire the creation of the form.
If you think you need a partner or partners to run the business then a partnership form is suitable for your purpose. In a partnership each partner owns a share which is equal to the amount of investment each contributes. One visible disadvantage is that if a partner dies or leave for one reason or another the business is dissolved.
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