Which business structure is more flexible? Sole proprietorship or a Limited...

S

Stevi Ann

New member
...Liability Company (LLC)? i THINK its an LLC? its homework help. thank you! :)
the homework question is.......


The most flexible business structure is a(n) __________
 
It depends on your perspective. Sole proprietorships are easier to start, and the bulk of decision making is of course made by one person, instead of by a board, or other partners. In our sue hungry society however, most new businesses take the time to fill our paperwork to become a corporation, LLC etc in order to limit their liability, and not lose personal assets. It kind of fulfills that old adage, "A stitch in time saves nine.
 
An LLC protects your own personal assets in case your company is sued. However, the legal structure is more complicated than Sole Proprietorship.

In an SP, you have less restrictions on reporting, etc, but you are not protected. If someone sues you, you could lose everything - house, car, business, even your furniture.

Since you are doing this for a homework exercise, and the liability part is not being considered, I would say the more flexible structure is the SP.
 
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