Business Structure Of The Field On Entrepreneurship

1613 Words Nov 15th, 2015 7 Pages
Business Structure
When going into the field on entrepreneurship it is important to decide which form of business to use. Determining what form of business you’re going to operate under is important because it will correlate to what tax return form you’ll have to file. There are five types of different forms that said entrepreneur can choose to operate under which are: sole proprietorship, partnerships, corporations, S corporations, and a limited liability company (LLC). A sole proprietorship is someone who owns an unincorporated business by himself or herself, and it’s the simplest business under which one can operate a business. The next form of business is a partnership which is simply two or more persons who join to carry on a trade or business. A partnership splits everything equally among the two partners, such contributions include: money, property, labor, or skill, this also reciprocates in the sharing the profit and losses of the business as well. When being in a partnership it is important to not misconstrue that you are partners and not employees therefor you should not be issued with a W-2 form. Also, a partnership is responsible for filing annual information returns to report the income, deductions, gains, and losses. Corporations fall under a corporate structure compared to an LLC, sole proprietorship, or partnership. Corporations acquire shareholders and from there the shareholders in exchange contribute money, property, both, and-or capital stock. S…
Open Document