respond to each peer separately, be relatable and add additional insights. Peer #1: The most common forms business formations used in the business sector are sole proprietorship, partnership and corporation. Sole proprietorship is a form of business formation that is owned by one person. The advantage of the sole proprietorship is that all profits go to the owner only. The disadvantage of this form of business is that the owner is solely responsible for losses and debts in the company. Partnership is a type business formation in which the business is owned by two or more people. The partners in a partnership may be individuals, business or organizations. With regards to partnership the advantage is that debts are shared among the parties or individuals involved in this business which tends to reduce burden. Corporation is a business entity that is owned by its share holders, who elect a board of directors to oversee the organization's activities and corporation is liable for the actions and finances of the company, the shareholders are not. Based on my business idea, the business formation I would be using for my business is sole proprietorship form. With sole proprietorship I would be able control the overall affairs of the business and be able to identify problems in the business and find the best possible solution. Also all the profits will come to me without having to share with anybody. In terms of tax, the profits of my business would be taxed on my personal tax return, at the same rate of tax that I pay personally. To deal with the implication, I would calculate the profits or loss from the business activities. The total revenue would be taking into account and the amount spent to earn the income will be subtracted from it. In conclusion, sole proprietorship is the best because of the minimal paperwork involved and low set up costs. I would consider changing the business formation in the future in order to partner with organizations or an individual in order to expand the business which will in turn generate lots of income and the debt that comes with it would be shared among the people I'm in partnership with. Peer #2: The different types of business formations are partnerships, sole proprietorship, LLC, S corporation, and C corporation. Partnerships are businesses that are ran and owned by two or more people. Partnerships often publish new ideas with each other, take credit for success together, and even failures together. Sole proprietorship is a business that is owned and ran by one person. All the responsibility, success, and failure falls on this one owner. LLC's are businesses that are owned by one or possibly two people. They have limited liability and are protected by the state. S corporations are corporations that have shareholders that earn the income, losses, deductions, and credit, C corporations are corporations that tax their shareholders and owners separately. For my business formation, I have elected to have an LLC. With me going this route, personally and my assets wouldn't be in danger in case my business were to be sued. This offers me personal liability and flexibility to run my business the way I want to. I can also determine how I want my business to be taxed. Since I'm reporting the gains and losses of the business, that is what I'd be taxed personally and what I'd gain back as well. In comparison, to other business formations in which the business and the owners taxed separately, hence double taxation. In conclusion, I believe going the LLC route is the right path for myself as it allows me to run my business the way I want, protects me with personal liability, and can determine how I want my business to be taxed. If the business continues to grow and expands, I would consider changing it to a formation that allows me to reach certain goals and heights that I would have never envisioned my business to go