Disadvantages: 1, the father and son need to pay all the funds and expenses, which is not suitable for businesses with insufficient savings; 2, the risk is high, the profit will make money, and the loss will fail; 3. In the development and planning of the company, it is more likely to make arbitrary and wrong decisions. 4. It is more stressful for a person to bear all legal responsibilities.
Legal basis: Regulations of the People's Republic of China on the Administration of Company Registration.
Article 17 The establishment of a company shall apply for pre-approval of its name.
Where laws, administrative regulations or the State Council decisions stipulate that the establishment of a company must be approved, or the business scope of the company belongs to matters that must be approved before registration according to laws, administrative regulations or the State Council decisions, the company name shall be pre-approved before being submitted for examination and approval, and the company name approved by the company registration authority shall be submitted.
Article 25 A company established according to law shall be issued with the Business License of Enterprise as a Legal Person by the company registration authority. The date of issuance of the business license of the company is the date of establishment of the company. With the Business License of Enterprise as a Legal Person issued by the company registration authority, the company seals, opens a bank account and applies for tax registration.