Ownership
By: Grant Deacon
Sole Proprietorship
A sole proprietorship has many regulations but the biggest one is that the owner has to register the business and claim them self self employed.
Advantages Of a Sole Proprietorship
- A sole proprietor has complete control and decision-making power over the business.
- Sale or transfer can take place at the discretion of the sole proprietor.
- No corporate tax payments
- Minimal legal costs to forming a sole proprietorship
- Few formal business requirements
Disadvantages Of a Sole Proprietorship
- The sole proprietor of the business can be held personally liable for the debts and obligations of the business. Additionally, this risk extends to any liabilities incurred as a result of acts committed by employees of the company.
- All responsibilities and business decisions fall on the shoulders of the sole proprietor.
- Investors won't usually invest in sole proprietorships.
- The Proprietor will also have some hefty financial risk.
Landscaping
Most Landscaping businesses are sole proprietor ships
General Partnership & Limited Liability Partnership
Business Entities - Partnership
Advantages Of a General Partnership
The advantages of a general partnership are,easy formation, simple structure, and dissolution.
Disadvantages of a General Partnership
Partnerships can grow to large to handle.
Legal Firms
Legal firms most times are general partnerships.
Advantages of a Limited Liability Partnership
Liability protection
Tax advantages
Flexibility
Disadvantages of a Limited Liability Partnership
Some states don't recognize it as a partnership
Taxes can be higher because it is not viewed as a partnership
Accounting Firms
Accounting firms and law firms can go either way being a general partnership or a limited liability partnership.
Corporation
What is a corporation?
What sets the corporation apart from all other types of business is that a corporation is an independent legal entity, separate from the people who own, control, and manage it. In other words, corporation and tax laws view the corporation as a legal "person" that can enter into contracts, incur debts, and pay taxes apart from its owners. Other important characteristics also result from the corporation's separate existence: A corporation does not dissolve when its owners (shareholders) change or die, and the owners of a corporation have limited liability that is, they are not personally responsible for the corporation's debts.
What is a Corporation?
Advantages of a Corporation
Limits Liabilility
Tax Treatment
Everlasting
Costs
Disadvantages of a Corporation
Double Taxation
Documentation
7-11
7-11 is a huge corporation that runs convenience stores.
Sources
"List of Corporations." SourceWatch. N.p., n.d. Web. 19 Sept. 2014.
"Advantages and Disadvantages of the Corporate Form of Business." Small Business. N.p., n.d. Web. 19 Sept. 2014.
"What Is a Corporation? - Nolo.com." Nolo.com. N.p., n.d. Web. 19 Sept. 2014.
"Examples of Limited Liability Partnership." Small Business. N.p., n.d. Web. 19 Sept. 2014.