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Types of Business Business is any activity that seeks to provide goods and services to others while operating at a profit. Business is the solution of how to get money, although business can be very risky. Anyone in the world can open a business, but there are some steps before deciding how would they structure their business. They will need to know their options. There are many ways to organize a business; the five most common ways are sole proprietorship, partnership, limited partnership, Limited Liability Company, corporation. Each of these forms of business ownership has many advantages and disadvantages. Sole proprietorship is a type of business that is run by an individual and is not registered with the state like a limited liability company (LLC) or corporation. The advantages of sole proprietorship are that it is easy to organize, very flexible since the owner is the boss of the business establishment and receives all of the profits. Although owning such a business is definitely not a light task. It has a lot of disadvantages for example as a sole proprietor you are personally liable for any and all debts and the liabilities of the business. Whether a customer makes a claim against the business, an employee, a competitor, or a trade creditor the owner of the business will be personally involved for any such claims. As a result all of the owners personal assets, home, motor vehicles, saving accounts, jewelry, household good, etc; will be subject to the claims of all such creditors. A sole propriety is not considered an employee. In sole proprietors the owner can hire any number of employees and any number of independent contractors. Also there is a tax advantage because the law makes no distinction between the owner and the business. The first advantage is the avoidance of double tax, and the second is that the owner can deduct their business losses to the extent of their total income. But the owner may pay a higher income tax and there are no