ENTREPRENEURSHIP

Detailed explanation-1: -The legal status of a sole proprietorship can be defined as follows: It is not a separate legal entity from the business owner. The business owner has unlimited liability (i.e. the business owner is personally liable for all the debts and losses of the sole proprietorship) It can sue or be sued in the owner’s name.

Detailed explanation-2: -The most common forms of business ownership are sole proprietorship, partnership, limited liability partnership, limited liability company (LLC), series LLC, and corporations, which can be taxed as C corporations or S corporations.

Detailed explanation-3: -If a sole proprietorship fails, the owner may lose whatever was invested in the business; however, the owner’s personal assets are not at risk. Sole proprietors have unlimited liability for the debts of their business. This means that if their business gets into financial trouble they can lose their personal assets.

Detailed explanation-4: -Limited Liability Company (LLC) An LLC is a hybrid between a partnership and a corporation. Members of an LLC have operational flexibility and income benefits similar to a partnership but also have limited liability exposure.