Three form of business entities

A corporation is essentially a tax shelter for rich people. A corporation is treated as a person under law. There was a documentary that compared corporations to a psychotic person. The documentary showed how maximizing profit, which is the main objective of a corporation, was hurting our society. The people that form corporations use such business entities to exploit the workforce of third world countries and harm the environment by forming key alliances with friendly government officials. However, it should be noted that the rich people of this country get richer every day, so we should acknowledge that corporations are a great way to do business by minimizing the risks. Corporations cost more to form, but the small cost is worth it. Some corporations issue stock to raise capital, so they can be more competitive in their respective industries, as opposed to the limited capital of a sole proprietorship and partnership.A partnership exists when two or more people decide to go into business together. They both are financially liable for the debts of the business. However, some entrepreneurs circumvent this by forming a limited partnership whereas certain members can retain control over the business without risking their personal assets. A partnership can be riskier than a sole proprietorship in that all debts that a company builds up during the course of business is owed by all partners. However, if your partner(s) disappear to another country, you are left with the entire bill. It would be a mistake to think that going into a partnership with a person splits the risk of doing business, when in fact it doubles the risk, especially if your partner leverages your business without your knowledge. There have been numerous examples of business owners owing gambling debts incurred by their partners. In a situation like that, a corporation would have protected your personal assets if your company files for bankruptcy. A sole proprietorship is essentially a business entity that allows the owner of a business to get sued if someone is hurt financially, emotionally, or physically by his organization. It is not advisable to form a sole proprietorship given the many frivolous lawsuits that make it through the court system nowadays. Many new business owners try not to take on more risk than is necessary when they first start a business. However, many do not realize that by forming a sole proprietorship, they are essentially putting their exposing their valued personal assets (such as a house or car) to unnecessary risks.