Major Types of Business Ownership

James Lange - 1st Period Entrepreneurship

Limited Liability Partnership (LLP)

A Limited Liability Partnership is not a partnership or corporation. Owners are called members, not partners or shareholders. The owners have the same liability protection of a corporation. For more information on Limited Liability Partnership, watch the video.
What does it mean to have a limited liability partnership, or LLP?

Advantages vs. Disadvantages

Advantages


  • Losses, profits, and expenses flow through the company to individual members avoiding the double taxation of a corporation.


Disadvantages


  • An LLC disolves when a member undergoes bankruptcy or dies.

Sole Propietorships

A sole proprietorship is a business that is owned and operated by one person. The person running the business. For more information on sole proprietorship's, watch the video below.
Business Entities - Sole Proprietorship

Corporation

A corporation is a business that is registered by a state and operates apart from its owners. They're two types of corporations, S corporations and C corporations.
What is a Corporation?
A C Corporation is a business that pays taxes on earnings. For more information on C corporations, watch the video below.
What is a C Corporation?
A S Corporation is a business that is taxed like a partnership. The income of a corporation is passed through the shareholders. For more information on S corporations, watch the video below.
What is an S Corporation?

Sources

Video 1 (LLP): http://youtu.be/yCIoaNZETPY

Video 2 (SP vs. P) http://youtu.be/wlyu3NU7rrY

Video 3 (C corp) http://youtu.be/gCuQCvYt6xY

Video 4 (S corp) http://youtu.be/Q4CnzA39zw8

Video 5 (SoleProp.) http://youtu.be/WlKkI2PWIJs


Glencoe Business Plan Project workbook, Glencoe: Building the Future of Business McGrawHill