Advantages:Works well for people in low financial risk ventures.

Disadvantages:As sole proprietor you place your personal assets at risk.

Advantage: A partnership is not a bad choice of business entity for the same people who can benefit from choosing the sole proprietorship as a form of business in the first place.

Disadvantages: Partnerships don't really offer anything in the way of protection for your personal assets any more than a sole proprietorship. The big difference is that now someone else can put your assets at risk.

Advantages-Limited Liability companies are generally made to protect personal assets.

Disadvantages-Forming such an entity creates legal obligations which should be fully explored with your attorney before taking this step.

Advantages-Corporation, companies are generally made to protect personal assets.

Disadvantages-You can't treat the corporate bank account like your own purse. A Corporation must be treated like a living entity, separate and apart from themselves.