taxation income tax , cgt , transfer duty etc – transferability requirements to transfer members interest etc – TYPE ADVANTAGES DISADVANTAGES SOLE Simple to create Owner personally PROPRIETOR , expensive liable without 1 person , owner has total limitation , limited – decision making diversity in skills authority , no and capabilities, special legal owner has limited restrictions , access to capital , easy to lack of continuity discontinue PARTNERSHIP Ease of Members – 2 or more formation , personally liable , – maximum 20 diversification relative difficulty in people of skill and disposing of an ability , interest in increased partnership , lack of opportunity for continuity accumulation , minimal legal formalities CC - Relative ease of Membership is formation , limited to ten , limited liability juristic persons of the members , cannot be members increased capital acquisition potential , continuity COMPANY - Limited liability High degree of legal , raise large regulation , high amounts of operational costs capital , separation of ownership and control , continuity , transferability BUSINESS Ease of Limited access to TRUST formation , capital potential for – founder of trust limited liability , conflict places assets extreme flexibility ,
taxation – income tax , cgt , transfer duty etc transferability – requirements to transfer members interest etc TYPE ADVANTAGES DISADVANTAGES SOLE PROPRIETOR – 1 person Simple to create , expensive , owner has total decision making authority , no special legal restrictions , easy to discontinue Owner personally liable without limitation , limited diversity in skills and capabilities, owner has limited access to capital , lack of continuity PARTNERSHIP – 2 or more maximum 20 people Ease of formation , diversification of skill and ability , increased opportunity for accumulation , minimal legal formalities Members – personally liable , relative difficulty in disposing of an interest in partnership , lack of continuity CC - Relative ease of formation , limited liability of the members , increased capital acquisition potential , continuity Membership is limited to ten , juristic persons cannot be members COMPANY - Limited liability , raise large amounts of capital , separation of ownership and control , continuity , transferability High degree of legal regulation , high operational costs BUSINESS TRUST – founder of trust places assets Ease of formation , limited liability , extreme flexibility , Limited access to capital potential for conflict