3 Types of Business

(Logan & Nathaniel)

Sole Proprietorship

A business owned and managed by a single individual. The IRS says that 75% of all businesses are sole-propreitorships, but these generate only about 6% of sales.


AD: Sole receiver of profit

Easy to discontinue/close


DisAD: Limited life, Lack of being able to expand

Limited access to resources


EX: Individuals running a business in Charlotte, N.C., may form a sole proprietorship

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Partnerships

A business owned by 2 or more people who agree to divide responsibilities and profits among each other.


AD: Share decision making

Larger pool of assets


DisAD: Potential for conflict between others

General partners do not have absolute control over the business


EX: Christopher Chung, CEO, Economic Development Partnership of North America.

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Corporations

A legal entity owned by individual stockholders (which own shares of the business' stocks) are part owners of the corporations.


AD: Limited liability for owners


Long life (continues after the original owner is gone)


More potential for growth


DisAD: Double Taxes (Corporations pay taxes on income, Stockholders receive dividends, which are also taxed)

More legal requirements a regulations


EX: Bank of America is a Corporation located within North Carolina

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