TASK AHere are six forms of business organizations. Each form includes a description of the form and its main features, advantages and disadvantages with respect to the following categories: liability, income taxes, longevity, control, profit retention, location (expansion), and convenience. (a1) SOLE PROPERTY BUSINESS: an unincorporated business. business with one person as owner. Typically, the sole proprietor acts as general manager in all aspects of the business, but may hire others to manage the business. Due to its sole proprietorship nature, no agreements or formalities are necessary. The sole proprietorship is simple to create and offers its owner great autonomy, certain tax advantages and full ownership of profits. These advantages are offset by the fact that the sole proprietor's financial resources are limited to the owner's savings and credit. There is no distinction between the owner's business and their personal assets and liabilities. A business bankruptcy could lead creditors to go after the owner's personal assets. • Liability: The owner is personally responsible. There is no boundary between professional responsibility and personal responsibility. • Income taxes: Business taxes flow through to the owner's personal taxes, meaning the business and owner are treated as one unit. The owner's taxable income can be reduced by imputing business expenses. • Longevity: The business dies with the owner. Without careful and advanced planning, only essential transactions are permitted post mortem. • Control: The sole proprietor maintains absolute control over all aspects of the business. The owner may choose to employ people to manage the business, but ultimately has final approval and veto middle of paper......g pass-through taxation which is used as as a sole proprietor or as a partnership if members are added. This avoids double taxation. It also allows owners to offset the personal income tax liability against the business's likely future expenses and losses. The LLC will allow the owner to offer a certain level of membership to an investor. A wealthy investor may find it very attractive to offset their tax burden from outside income by investing in a profitable business with considerable future expenses related to expansion. In the operating agreement, the owner will be able to add family as members of the business and define the role and power of all members acquired through the investment. If he dies, the rest of his family will remain members of the LLC with the power to approve or veto the transfer of ownership interest..