1. Sole Proprietorship
Single proprietorship is the simplest form of organization in most of the countries in the world. Unlike other forms of entity, it is usually not governed by special laws. A proprietorship is a type of business entity which legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by a corporation and limited liability partnerships do not apply to sole proprietors. All debts of the business are debts of the owner. The single proprietor has unlimited liability since creditors of his business may proceed not only against the assets and properties of his business but also after his own personal assets and properties. A sole proprietorship essentially refers to a natural person or
…show more content…
Joint ventures are created in the essence of serving their purposes. They can be composed of a corporation, partnership or an individual.
5 Main Forms of Business Ownership
Sole Proprietorship- A sole proprietorship is owned by only one person. This is the most common form of business ownership.
General Partnership- A business owned by two or more people. The partners share ownership and control of the business.
Limited Partnership- A limited partnership consists of at least one general partner (controls the business) and at least one limited partner(investor).
Forming a Corporation- A corporation is a business which is considered a separate entity from you; even having the legal rights of a person. There are two types of corporations; C Corporations and S Corporations.
Limited Liability Company- The new “It” thing in the world of entrepreneurship. It’s popularity has been steadily growing in the past years. What attracts entrepreneurs to this business structure is that it provides the limited liability provided by corporations with out all the restrictions and taxes.
Business activities may be divided into three kinds: 1. Industry 2. Commerce 3. Services
This classification is based on the nature of principal activity performed by the business enterprise. 1. Industries involve the conversion of raw materials into finished products or goods and the application of labor upon raw materials so that greater usefulness becomes
| A general partnership is comprised of a group of two or more individuals who enter into an agreement to start a business. The partners and the business are legally the same. The partners enter into an agreement called the articles of partnership and are typically equally active in the business and the business’s management, unless otherwise stated in the partnership agreement. All profits and losses are shared by the partners in a joint business venture.
As a hybrid of partnerships and corporations, LLC’s provide limited liability for debts and flexibility to be taxed as a partnership or corporation (Staring and Naming a Business Presentation, 2012, Slide 5). Some specific advantages include being empowered authorities in the management of the business, diversity of members, limited liability, pass-through taxation, and less paperwork (appreciated by many). A drawback of this business structure is the need for a tailored operating agreement that specifies the specific needs of the
SOLE PROPRIETORSHIP: Sole proprietorships are the most common form of business in the United States. You and your business are one in the same. While being your own boss as its advantages, like working your own hours and collecting all profits made by the business, there are some disadvantages. For starters is coming up with starting working capital. Most Sole Proprietors have to seek funds from other sources.
partnership to continue, in the event a partner withdraws from the group. Similar to sole proprietorship, general partnerships tend to have a difficult time rounding up funding and resources, since most of the necessary capital comes from each partner's personal assets. This in turn may hinder longevity and growth of the organization. 4. Control In a typical general partnership, all partners will have equal rights and control over the business. It allows any partner to act on behalf of the business to make decisions and negotiation with
Control- The general partner(s) maintain control of the business. They have equal authority unless otherwise specified in a agreement. The limited partners do not maintain any control in the partnership.
33. A partner (owner) who invests money in a business, does not take an active role in managing the operation, and is only subject to losing the funds he/she invested.
A partnership is an arrangement between two or more groups, organizations or individuals who work together to achieve common aims or who have common interests.
Liability: The owner/operator of a Sole Proprietorship is subject to full and unlimited financial liability for the business. The owner and the company are legally the same entity. The company’s assets are legally the same as the owner’s personal assets.
Sole Proprietorship: This is a type of business is where the business and the owner are one in
Sole Proprietorship: A type of business that is owned by and run by one person with no legal difference between the business and the owner. It is easy to form with no cost or time to initiate. It gives the owner the ability to self-govern the business. There are drawbacks; only one owner can be established not allowing a partner. Also, unlimited liability puts the owner’s personal assets in jeopardy with the creditors.
General Partnership: Occurs when two or more individuals get together to operate a business with the intention of making profit. Each individual is a general partner of the business and all profits and losses are shared between the partners. General partnership agreements can be a written or verbal agreement.
Sole proprietorship is a business organization operated by one owner. For example, you start a landscaping business by yourself.
Limited partnership: Owners are distinguished as either general or limited partners. Limited partners are only liable about their contribution to the partnership involving funds, equipment and other property.
A partnership is a business organization where the partners own the business together and are
Corporations are a different type of business. They are more complex to start because more paperwork is involved and the corporation generally has to be registered at the state level. An ordinary corporation is formed through the articles of incorporation. These corporations are legal entities, and therefore bear legal responsibility. The shareholders of the corporation do not bear legal liability. In addition, corporate income is taxed differently it does not flow through to the owner's personal income tax statements. The