List the three main forms of business organization and describe their advantages and disadvantages.

1. Sole Proprietorship: A sole proprietorship is a business owned and managed by one individual. The owner of the business has complete control over the management, operations and profits of the company. Advantages of a sole proprietorship include ease of formation, minimal paperwork, no corporate tax payments and direct access to profits. Disadvantages include unlimited personal liability for all debts and obligations incurred by the business as well as difficulty in raising capital due to lack of ownership transferability.

2. Partnership: A partnership is a type of business organization that involves two or more individuals collectively managing and owning a company together. Partnerships are typically taxed as pass-through entities meaning that any profits or losses flow directly through to its owners who must then report this income on their individual tax returns. Advantages include shared decision-making responsibilities between partners as well as greater ability to raise capital due to multiple sources of financing available from various partners involved in the venture itself. Disadvantage includes potential disagreements between parties which may cause tension within the group dynamic; additionally each partner is personally liable for any debts/obligations accrued by other members in addition to their own proportionate share making it difficult for an outsider investor joining down the line with little influence nor legal protection if things go awry during the journey .

3. Corporation: A corporation is a legal entity created under state law separate from its owners known as shareholders who invest money into it via equity offerings whereupon each shareholder receives partial ownership rights over issues related solely only them ( i .e voting power etc). Corporations offer numerous advantages including limited liability (meaning creditors can’t pursue shareholders’ personal assets should anything go wrong), higher credit capacity enabling access to larger amounts/types of capital needed for expansion projects , continuous life span even if some founding members leave while new ones join without disrupting operations along with opportunities for reducing taxes with certain strategies! Disadvantages include complex formation process involving lots paperwork , costly fees associated with filing documents plus double taxation where not only must companies pay taxes but shareholders too when they receive dividends declared by board members.