Business Poster

By Dillon Beam

Proprietorships

Structure = You are the sole owner of a company like a job mowing lawn and there is no one who is over you.


advantages= The sole owner has all the pride of owning the company and receives all of the profits and can make instant decisions without having to consult anyone and no corporate income tax.

Disadvantages= The owner of the business has to take full liability and responsibility for all debt from the business. Some of there there personal objects can also be seized to pay off the debts.

Partnerships

Structure= You and your partner sign an “articles of partnership” which states how much each of you will contribute and the role you play in the company and how profits and losses will be shared.


Advantages= No corporate income tax, more money raised based on more owners, each partner can bring in a special talent the others don't have, more people also means higher efficiency.


Disadvantages = No corporate income tax, more money raised based on more owners, each partner can bring in a special talent the others don't have, more people also means higher efficiency

Corporations

Structure= Must have a charter to organize a corporation(includes name, purpose, address, and other features, and amount of stock or ownership shares), stockholders become part owners of the corporation who elect a board of directors to act on their behalf.


Advantages= Ease of raising financial capital for example can sell more stocks and can borrow money easier, ease of growing capital allowing the corporation to grow huge and can employ thousands of workers.


Disadvantages= Expensive and complex to setup, owners have very little say so, Very high government regulation, stockholders are subject to double tax for corporation tax and tax after its distributed to the stockholders.