answersLogoWhite

0


Best Answer

In a limited liability corporation, the company is not personally liable for it, and the owners and shareholders will not get personally sued, only the company will. It has a high start up cost, and it has a long life.

Sole proprietorship's have a low start up cost, generally have short life spans, and are personally liable,

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are the differences between a sole proprietorship and limited liability corporation?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How is Partnership distinguish from corporation?

There are four main differences between a partnership and a corporation. Those differences are how liability is distributed, how taxes are assessed, the flexibility of running and selling the business, and how it raises capital.


What are the differences between civil service and public corporation?

Difference between Public Corporation and Civil Service


What is the Differences between Limited Liability Company and cooperative society?

check


What is true of a proprietorship?

a sole proprietorship is owned and ran by one person. there is no clear delineation between the owner and the business. All debts and all assets are the owner's. as a result, the owner has unlimited liability as opposed to a business that is incorporated.


Business Setup - Sole Proprietorship, Partnership or Corporation?

When starting a small business, one of the very first things you need to decide is the type of business setup you want to have. The 3 basic types of business setups are a sole proprietorship, a partnership and a corporation. Only one of these setups will protect your personal assets from possibly being forfeited to satisfy the liabilities that may be incurred by the business. A corporation is a separate legal entity and has all the power to hire employees, handle finances and conduct day-to-day business operations that an individual operating as a sole proprietor. The main difference between a corporation and a sole proprietor or general partnership is with liability. An individual or partners in a business can be sued or held personally responsible for the actions of a business while a corporation protects the shareholders from any personal liability.


The Difference Between a proprietary and a Limited Company?

The mail difference is of liability of share holder. In Limited or Pvt. Ltd. co. the liability of a share holder is limited to the extent of his share and in proprietorship firm the liability is 100% as this is of one man show. - Deepak Srivastava


What are the differences between liability rates between different auto insurance companies?

There are too many differences to answer that question. To many variables that affect premiums.


What is the difference between LLC vs Inc?

Inc. refers to an entity being a corporation while LLC means limited liability company. The difference is in the structure of the companies. A corporation also offers limited liability, but it differs from a corporation in structure and the regulations it must follow.


differences between public company and public corporation?

Public Corporation - There are there on behalf of people. Public companie -They are there for people to use


What is the primary difference between limited liability and unlimited liability?

The difference between being able to keep some things if you owe a large amount of money in a judgement and having everything you own confiscated to pay debts. If you have limited liability - like in a corporation - the maximum liability is the amount paid in for shares (or the amount owed if they haven't paid the full value of them), you are not liable for any debts owed by the corporation even if its assets can't pay all of them. If you have unlimited liability - like in a sole proprietorship or a partnership - you're on the hook for everything you own to cover debts for the business. Say one of your employees hits someone with your truck, and you don't have enough insurance. The person can enforce a judgement by having your car, your house, your savings and everything you own seized and sold until it is satisfied or you are bankrupt.


What is true of a sole proprietorship?

a sole proprietorship is owned and ran by one person. there is no clear delineation between the owner and the business. All debts and all assets are the owner's. as a result, the owner has unlimited liability as opposed to a business that is incorporated.


What are the differences between ahtlon and Intel?

Athlon: Computer Chip developed by AMD( Advanced Micro Devices) Corporation. Intel: Integrated Electronics Corporation.