in this paper we will only discuss four: sole proprietorship, partnership, LLC, and a corporation. A sole proprietorship is the most common business structure. This type of structure has one owner who is entitled to all profit and accrues all the losses. In forming a sole proprietorship there is no formal action. As long as there is only one owner it is easy to form a sole proprietorship. With the proper permits and license one can have a sole proprietorship structured business. Within this structure
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the owner of a sole proprietorship? Since there’s no legal distinction between the owner and the business, creditors can go after your personal assets and in a worse case scenario after your spouse. 3. What is an LLC? How does an LLC or corporation differ from a sole proprietorship or partnership if the firm goes bankrupt? A Limited Liability Company (LLC) or Limited Partnership is a one or more main partner who will run the business and make unlimited liability, but there are
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The four main forms of business organizations namely sole proprietorship, partnership, C corporation, and S corporation have various advantages and disadvantages in terms of tax implications, legal status, financial obligations, and even set up time and compliance issues. A sole proprietorship is an individual based business. The advantages of sole proprietorship are various including the easiness to start and dissolve the company, the ability to have personal and complete control over the company
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forms of business organizations are: * Joint-stock company (JSC), which refers to a type of corporation or partnership that involves two or more individuals who own shares of stock in a company. In a JSC, shareholders are free to transfer their ownership interest at any time by selling their shareholding to others. Moreover, in a JSC company, the stockholders have unlimited liability, meaning that their capital and wealth can be seized to pay its debts. Microsoft Inc. is an example of a public
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Business entrepreneurship 1. Sole proprietorship The sole proprietorship is the easiest business structure under which one can work a business. The sole proprietorship is not a lawful element. It essentially alludes to a man who possesses the business and is in charge of its obligations. The sole proprietorship is a mainstream business structure because of its straightforwardness, simplicity of setup, and ostensible expense. A sole proprietor needs to enlist his or her name and secure
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lot of liabilities that aren’t often found within other business models, such as a Limited Liability Corporation. A Limited Liability Corporation offers protections to its investors. In an LLC, the individual is only liable for what they have invested. If an LLC is to face a lawsuit from an unhappy customer, the partners and investors are protected because the plaintiffs are suing the company instead of its investors. Another business model is the simple partnership. A partnership is whenever
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management decisions, government restrictions, personal liability, and tax consideration” (Chessman, 201) to name a few. The major forms of business organizations are general partnership, limited partnership, sole proprietorship, limited liability partnerships, limited liability company, and corporation. Having an understanding of the type of business to form depends on what the goal of the company is. Sole Proprietorship A sole proprietorship is the simplest form of business organization. The owner
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kinds of business formations available. Each one is distinctly designed to address a business’s specific needs. Business formations generally consist of sole proprietor, partnerships, corporations, and limited liability companies. Corporations and partnerships can be further broken down into what’s known as general partnerships, limited partnerships, C corporations, and S corporations. The key difference is in reporting and accountability. When it comes to a C corporation, the largest shareholder
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“YOU” as the owner, must consider what form of business entity to establish. Your business structure determines which income tax return form you have to file. The most common forms of businesses today are the Sole Proprietorship, Partnership, Corporation, and S Corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. John, you want to generate revenue of course, but you also have to protect any personal assets you may have in the event of a lawsuit
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form that is best suits your new business. There is more than one form of business structure such as: Sole Proprietorships, Partnerships, Corporations, and the Limited liability corporations (LLCs) which are a hybrid form of Business organizations. The sole Proprietorship is owned by one person, and it’s the simplest way to start a business as it’s less regulated than other forms of business. Sole proprietor does not have to share the decision-making authority with anyone else and keeps the profits
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