Business Ownerships : An Owner Of A Business

There are several different types of business ownership which are most commonly used in business’ and company’s today, these include; Co-operative which is a business owned by its employees, Partnership which is a business owned by between 2 and 20 people, Private limited which is a business owner by a small groups of people who have shares and a Public limited business is owned by private individuals by shares bought and sold on the stock market. A charity is a business with the purpose to help the public, the government is a business owned by the government and lastly a sole trader which is a business owned by only one person.

In contrast, if a partner decides to leave the business, the owners will no longer be classified as partnerships and the business will end. When you are set as partnership, the decisions of every shareholder will have to be honoured and if they do not have enough experience, the business could be having troubles. An example of a partnership can be H&M, M&S...

When an individual chooses to start a business there are several business forms they may choose to take. The option that they chose to depends on several factors such as how much control an individual wishes to have within the organization and to what extent are they willing to be liable for the business’s actions. This paper will look at three types of business forms: sole proprietorships, partnerships and corporations. After each form is examined a recommendation will be made to James regarding which type he should choose.

Connie, your desire to open up a business is the American dream. Yet understanding how to have a detailed business plan is what keeps the small business thriving in today’s market place. Your insight of the development of minority business ownership is intriguing and it is important to have more woman businesses in today’s society. I believe in supporting small businesses in our community since business owners help keep money in the town. Having a family member to guide you through the business world is a great asset in today’s challenging upstart marketplace.

Partnership- Not unlike a sole trader however a partnership is when two people join together to set up a business. Both partners are expected to contribute equally towards the capitol income, therefore increasing the potential amount of profit available to the owners. Any start-up loans used as a foundation for the business are still secured by the partner’s own assets which although makes a partnership not as risky as the sole trader but it’s still quite a high risk option.

A proprietorship is the most basic business entity (Dewhurst, 2014), in which an owner receives all profits and is legally liable for the obligations related to the business. It is the easiest structure to set-up, register and maintain, and additional tax incomes are not legally separated from the person. Its biggest disadvantage is that the personal property of the owner are not legally protected in case of financial obligations or company debts (Pakroo, 2004).

At times, individuals with similar business interest may form a partnership in order share responsibility and resources in operating a business. On the other hand, a partnership can be formed where one individual is solely a financial partner, while the other may be an operating partner. Partnerships come with their advantages and disadvantages as well. The advantages of partnerships are they are easy to establish, combines the skills and resources of two or more people and increases the ability to raise funding for the business. The disadvantages of partnerships are; profits must be shared, increased possibility of conflict, interdependence of decision making and unlimited liability. Regardless of the arrangement, partnerships are an excellent opportunity for individuals to join together and use their resources, finances and talent to create a successful business.

The benefits of Partnership Company are that business is anything but difficult to build up and start-up expenses are low. There is more capital accessible for the business. Workers that are of high-bore are made accomplices. The burdens are that the obligation of the accomplices for the obligations of the business is boundless . There is additionally danger of differences and contact among accomplices and administration. Every accomplice is an agent of the partnership and is at risk for activities by different accomplices. This means that it brothers choose this type, they will be responsible for each other’s action irrespective of the fact whether they like it or

Your current ownership structure is a partnership with Sue, together running your business, Outdoor Adventures. A partnership is a group of persons carrying on a business with a view to profit. In order for your business, Outdoor adventure, to continue operations, ultimately it needs to make a profit. Running at a loss will make it impossible to continue operations. From previous statements, it read 3 years ago, that you were looking to expand/increase the capital for the business. An advantage of a partnership does consist of being able to generate more capital than a sole proprietor so that a sole proprietor business that has reached the limit of its owner 's ability to fund its future can continue operations with the injection of additional capital from a partner who will share the risks and rewards of the business. Outdoors Adventures will also benefit from Sue entering the business, as she will bring different skills and ideas, steering the business in many differing paths allowing it to grow in more areas. She now can allow you to specialize in different parts of your business as she now takes on some responsibilities for example on the Zip Wires in particular. However, partnerships do have many

We would like to take over the ownership of a liquor business named By-Pass Liquor store located at 3118 South School Avenue, Fayetteville, Arkansas 72701. This is a turnkey business with good costumer flow and in a prime location of Southern Fayetteville. The business property is in market for a listing price of $335,000 for real-estate, furniture equipment, building and including inventory about $30,000. In order to transfer the ownership of this business to us we are seeking funding from the First state bank, and it will be utilized to buy the real-estate, all the equipment and inventory. We also have cash amount about $135,000 that also can be used to operate and improve the business. Repayment of the loan and interest can begin promptly as the bank 's policy. We have already seen all the paperwork and monitored this business, and from our observation and experience we are pretty sure that this business can repay the mortgage and give us $5000.00 of net profit monthly.

When beginning a business, it is extremely important that the owners of the business decide the organizational form that will be beneficial to maximize the value of the firm. The owners must consider the size of the business, the taxation of the business, the liability of the owners and the ability to raise capital to finance the business (Parrino, Kidwell & Bates, 2012). The owners will then choose one of the 3 different forms: sole proprietorship, partnership or corporation.

In a sole trader structure, the owner keeps all the profit since he provides all capital for the business. A partnership structured business shares its revenue with every single partner under the calculations. However, it might be beneficial because splitting up the revenue means that tax payment will also be shared (Department of State Growth [DSG] 2015 a). On the contrary, private company shares its profit according to equity of the shareholders. For example, A holds 2% of shares while B holds 15% when profit sharing occurs A could only get 2 % and B would receive 15% of the profit share.

After the creation of a business plan, the next step to operating a business is the selection of an appropriate business structure. Different legal forms of business ownerships affect different managerial and financial factors from the business names to the tax obligations (Gregory, n.d.). The most common forms are sole proprietorship, partnership, cooperatives, and corporations. There are different types of corporations in the business world, but the two most general corporation types are S Corporation and Limited Liability Company (LLC) (Ferrell et al., 2013). The sole proprietorship is the easiest and most basic form of business ownership. It is owned and run by one individual, which is the proprietor. The individual is entitled to all profits and is responsible for all the business’s

There are a number of forms of ownership that the business can take. The main forms are sole proprietorship, partnership, Limited Liability Corporation, corporation and S corporation. There are advantages and disadvantages to each of these forms that will be discussed in this section. A sole proprietorship essentially has the person as the business. In this situation, the proprietor bears all of the risk involved in the business. Business income flows through to the proprietor's personal taxes. For some individuals there are tax advantages, but for many the appeal of the sole proprietorship is its simplicity. The IRS defines a partnership as a relationship existing between two or more individuals who joint to carry on a business. Partners divide income according to their own agreement and that income flows through to their personal taxes. Partners also have a high level of liability for any legal action that befalls the company.

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