In dividual

CIVIL Assignment
SERVICE INSTITUTE
Topic: Compare and Contrast Sole Proprietorship and Partnership Business.

Introduction:
Sole proprietorship and partnership are two forms of business entities according to their
ownership.

Sole proprietorships are businesses that are owned and operated by a single business
owner.
Partnerships are businesses that are owned by two or more individuals.

Partnerships and sole proprietorships are relatively easy to form because formation paperwork is
not required to begin operating either business type. Partnerships and sole proprietorships are not
separate entities from the owners of the business. There are more similarities that these two types
have common and as well as differences.[ CITATION Enc \l 1033 ]

Similarities

Personal liability

Both sole proprietorship and partnership are personal liability , both structures the owners are
personally liable for the debts and obligations.

Taxations
The owners of sole proprietor and partners pay only personal income, not business income tax.

Formation
Both of them, they are simply set up and generally dont require registration with a state business
registrar.

Differences.

Sole Proprietorship Partnership

Nature of Ownership Nature of Ownership
Its wholly owned by single person (single Its owned by two or more people.
individual) Formation:
Formation Written or Oral agreement.
No families or legal documentation, it may be
implied from conduct or actions.

By: Khadar Haibe Ahmed Date: 12/07/2017

 Individual Assignment
CIVIL SERVICE INSTITUTE
Topic: Compare and Contrast Sole Proprietorship and Partnership Business.
Governing Documents Governing documents
None required None required but most , have agreement
specifying rights, duties and obligations
Liability Liability
Sole proprietors personally liable for all debts Partners are jointly and severally liable for all
and obligations. partnership Obligations.

By: Khadar Haibe Ahmed Date: 12/07/2017