Pros and Cons - Business Form

	Sole proprietorship	Partnership	Company
Formation	Easily formed or terminated	No formalities, easily formed	Requires formality and take longer time
Liability	Owner assume liability	Partners assume liability	Limited liability
No.of members	1	2 - 20	2 - 50
Lifespan	Owners lifespan	Owners lifespan	Perpetual lifespan
Cost of registration	Below $100	Below $100	More than $300

*All forms of businesses need to be registered with ACRA unless your business is exempted from registration.

So, why do some businesses register as company when it requires more formalities, and is more costly?

- The most apparent reason is that partners do not assume business liability. Your company is a separate entity. If someone sue your company, you will not be personally liable. This is a form of protection for you and your partners.

Above is just a simplified table explaining about the basic of business formation. eCorp Solutions Pte Ltd do not assume any responsiblity for loss or damages for the reliance of above information. We advise that you consult us in advance before making any major decisions for your business.