Ownership
By: Ethan Bikman
Sole proprietorship
This is a business run by one person.
Advantages:
The advantages are that you don't have to depend on some one if they forget to do something.
Disadvantages:
The disadvantages are that you don't have another person to help you with stuff.
Rules and regulations:
You have to pay taxes. The owner uses their social security number instead of their employee number to file taxes.
Facts:
Business terminates as soon as the founder dies. All the Money goes to the owner.
Examples:
One example is Pierre Omidyar who founded eBay. It is no longer a sole proprietorship but started out as one.
Partenership
A business or firm owned and run by two or more partners
Advantages:
You make be able to earn more money. Easier to start one. The money goes directly to all partners.
Disadvantages:
There are arguments between partners. Blame on who is responsible for what. All the money made has to be split. All partners are taxed separatedly.
Rules and regulations:
It's illegal to give one partner more work than another partner. Obey the laws of the state.
Facts:
It is more effective to have a partnership business than a sole proprietorship business. All partners have the same amount of authority.
Examples:
A good example of a successful partnership business is Apple.
Limited Liability Partnership
One partner is not responsible for another's job.
Advantages:
All partners are protected by from some kind of liability. When ownership changes security laws do not become relevant.
Disadvantages:
Some states do not grant some liabilities if the company was formed in another state.
Rules and regulations:
Each person is responsible for what they do. Each responsible for their own taxes.
Facts:
In some states you are required to change your business into a LLC. Different in every state.
Examples:
An example of an LLC company is AT&T.
Corporation
A group of people that acts like a single person.
Advantages:
Shareholders aren't responsible for any debts. The company can receive more money by sell in shares. Can be treated as a S Corporation.
Disadvantages:
Cost more money to start than any other type of business. Government watches corporations. Have higher taxes.
Rules and regulations:
Everyone must have an employee ID number. Must pay taxes. Must obey labor laws. Has to follow industry laws/ regulations.
Facts:
They dominate the U.S economy
Examples:
A good example of a corporation buiness is Google.