Ownership

By: Ethan Bikman

Sole proprietorship

Definition:

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

Definition:

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

Definition:

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

Definition:

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.