The Differences Between Company and Proprietorship

1.       In proprietorship the owner has unlimited liability where personal property is at risk if one is unable to pay debt. In company property is different from the shareholders who on it.
2          In proprietorship one cannot get loan for capital or running business since there are no guarantors. In company capital can be raised for selling shares to shareholders or plough back profit/dividend or loans.

3.       Unlike in company no stock selling of shares is done to public in Proprietorship.
4.       Company doesn’t come to an end or bankrupt with death of an individual member because there or other person to take over but in proprietorship death means end of business.
5.       One in proprietorship person may not be talented in all areas of running a business; this may result in failure of the other side of business. In company people work on their field of specialization e.g. management, engineering, marketing etc,etc.
6.       In proprietorship one may take the wrong decision because he acts according to his ideas alone while decision making in company is first discussed and agreed upon by members.
7. Proprietorship owners pay personal tax while company pays corporate income taxes