Evaluate the legal and ethical pros and cons of various business organizational types. One notable feature of the law of American business organizations is how much flexibility and variation the law provides. . If you want complete control, low barriers to entry, and minimal bureaucratic regulation in the formation process, you can start a sole proprietorship. Of course, these positive attributes are coupled with unlimited personal liability for the business owner and the challenges of raising capital, which are generally viewed negatively. . In contrast, if you want limited liability and the possibility of attracting investors, you can form a corporation. But corporations also separate ownership from control, and there are costs associated with the formation and registration process. . LLCs seem to combine some of the favorable aspects of both organizational forms, but they too have a few drawbacks. Entrepreneurs have several options when selecting an organizational form, and a basic understanding of company law is an important part of starting out in business.  There are also numerous resources available on the web, such as this example blog E from a law firm in Chicago. Post: Imagine that you are an entrepreneur starting a business. Which organizational form should you choose (proprietorship, corporation, or LLC), and why? What are the positive and negative attributes of each?

Answer rating: 100% (QA)

Here is a comparison of the key legal and ethical pros and cons of different business organizational ... View the full answer