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There are many different types of business scenarios each one has a different amount of risk and functionality as an individual wanting to start a company you should choose the organizational form that is best for you. A joint stock company is an association of people in a business that has shares that are transferable by buying and selling shares of stock. The stockholders are liable for all of the debts of the company. Each shareholder owns a portion of stock and this is evident by the amount of shares that he or she holds. Limited Liability Company is a type of legal structure that provides the limited liability features of a corporation and the tax effectiveness and flexibility of a partnership. The owners of this type of business are referred to as members. Depending on the state that the company was formed is what says how many people can be involved in the company.
Partnership is an arrangement where people known as partners agree to be in business together and work together towards a common goal. A partnership can be between two or more people and each person contributes either money, property, labor or skills. Each partner also shares profits and losses. To file taxes in this type of company you need to register with the IRS as well as with state and local revenue agencies and also pay partnership taxes
Sole proprietorship is the simplest and most common scenario chosen to start a business. It is an unincorporated business that is both owned and ran by one person and that person is solely responsible for any debts, taxes and problems that may occur in the daily operations of the business. Taxation is simple the owner just reports income or losses and expenses by filling simple tax

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