Which forms offer better continuity than a sole proprietorship?

• A. Sole proprietorship
• B. General partnership
• C. Corporations and LLCs
• D. Individual trusts

Answer: (C)

Continuity in a business form means the entity continues to exist even when owners change or pass away. A sole proprietorship isn’t a separate legal entity from the owner, so it ends when the owner dies or ceases to operate, making long-term plans fragile. Corporations and LLCs are separate legal personalities that can endure beyond changes in ownership; they can exist indefinitely and ownership can be transferred without dissolving the business. That enduring nature makes them the forms that offer the strongest continuity for ongoing operations, funding, and succession. While trusts can provide stability for assets and estates, and partnerships can offer continuity under specific agreements, they do not match the perpetual existence and transferable ownership that corporations and LLCs provide.