There are a lot of legal forms for businesses. In this paper, I will talk about these forms; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. I will try to develop scenarios in which each of these forms of business would be the preferred form. For each scenario, I will justify why the corresponding business form is preferred.
Sole proprietorship is the first form of businesses and it is the simplest form of business organization. The Sole proprietorship and the owner of the businesses are representing the organization. Forming the sole proprietorship is very easy and does not cost a lot and this is why it is the most common business in United State. The businesses owner is the manager and he takes all the decisions and the responsibilities including the hiring, and firing the employees. The sole business owner owns all of the business and has the right to obtain all of the business’s profits. For the past points, the sole business would best a good form. Lastly, the only disadvantage is that the sole business owner is responsible for the entire business obligation. There are many examples for the Sole proprietorship such as Independent Contractor, E-Business, Brick and Mortar Business… Etc. Tina is young lady who she part time student at community college. She decided to earn some money by creating a small business for dogs’ setter. She provides services in her new business (feed the dogs, walk them, and another services) she manages the business from her apartment. I think this is the best scenario for the Sole proprietorship.
The second form of businesses is the General Partnerships. Before I talk about the partnerships advantages and disadvantages, here is the general partnership definition ‘A general partnership, or partnership, is a voluntary association of two or more