Division and ClassificationProprietorships and corporation

With the growing number of corporations taking over small businesses, and the belief that becoming a proprietor is associated with being wealthy, one must decide which type of business to become involved with. There are several differences between these two types of business. A corporation is a business organization having a continuous existence independent of its members (owners) and power and liabilities distinct from those of its members. (Schiller 32) A proprietorship is a business organization created and owned by one person, this one person is called an entrepreneur. When comparing the two one must look at the advantages and disadvantages in relation to profits and taxes, continuity, capital and management ability, and liabilities.
Corporations are the largest business structure and can make billions of dollars a year. There are many expenses that corporations face and they also have to pay very high state and federal taxes. Profits do not belong only to the owner bec...