SOLE BUSINESS: A sole proprietorship is an independent business owned by an individual. Sole proprietorships are relatively small and in most cases a person's financial resources are sufficient to cover operating expenses. Characteristics of the individual enterprise1. Simplicity – Starting a sole proprietorship is quite simple. The only legal formalities are to apply for the required state or local license or permit. If the sole owner wants to operate the business under a name other than his own, a special filling certificate is required.2. Control – The sole owner has unlimited powers and liabilities. The fate of the company ultimately depends on the owner and therefore he makes all the important decisions. Furthermore, the sole owner manages all the main functions such as financial and sales.3. Convenience: the sole owner is his own boss. He does not report to anyone when making business decisions. No criticism/disapproval from third parties or external parties if bad choices are made. No state commercial charter, nor corporate regulations regulating or reducing its authority. The sole owner can expand the business activity at will, outsource it or outsource it. May seize/ignore business opportunities, sell or liquidate the business, or even move to another location.4. Profit Retention: All profits of the business constitute personal income for the sole owner. There is no partnership to share profits and there are no shareholders claiming dividends. Other profits in the form of donations, gifts, etc.5. Taxes – The individual entrepreneur and his business are taxed as a single unit. There is no separate reporting of federal income tax (pass-through taxation) and... half of the document... Nutes meeting.4. Profit – Limited liability companies have a flexible distribution of profits. Unlike joint partnership where profit is shared equally, LLCs have much more flexibility.5. Taxes – LLC can elect to be taxed as a sole proprietorship, partnership, S-corporation or C-corporation, offering a lot of flexibility and choices known as “check-the-box taxation.” Under the default tax classification, profit is taxed at the membership level and not at the LLC level (not double taxation)6. Liability: An LLC exists as a separate entity, just like a corporation. The owners of an LLC, called “members,” are protected from the liabilities and debts of the company and therefore cannot be held personally liable unless they have signed a personal guarantee. The LCC, on the other hand, has a limited duration, i.e. the company will be dissolved in the event of bankruptcy or death of a member.