What Are The Advantages And Disadvantages Of Hybrids

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Several hybrids have started to gain popularity and these hybrid forms have benefits for start-up companies. In a sole proprietorship, the owner holds full responsibility for everything happening in the company. They however they have the advantage of only being taxed one time as an individual but not a corporation. There is little government regulation and will likely have no stockholders, so the individual has freedom to make decisions as they please with no outside input. A partnership will be a less expensive option over a sole proprietorship because multiple parties have equity and investments in the company. There will be less liability on each individual if there is more than one person involved. It is relatively easy to form and there will be limited government regulation. A corporation has the advantage of having an indefinite life, often have stockholders and easy ownership.…show more content…
Disadvantages to a sole proprietorship would be that the individual holds full liability to the company. If the company were to fail or have a bad year, the owner would feel it and likely begin to lose their investments. A sole proprietorship would likely run into issues if they needed large amounts of cash or a loan. In a partnership, there are more likely to be disagreements over equity and splitting profits of the company. A partnership also holds a limited life and the owners could have difficulty transferring ownership or equity. A corporation has the disadvantages of double taxation in state and federal filings as well as filing reports on a federal and state level. The double taxation and filing reports can be expensive, complex and time

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