FORMS OF BUSINESS OWNERSHIP
BY: JAVON
WHAT ARE THE FORMS OF BUSINESS OWNERSHIP?
THE FORM OF BUSINESS OWNER IS DESCRIBED IN MANY WAYS. THE FORM OF BUSINESS OWNERSHIP DESCRIBES HOW A BUSINESS IS LEGALLY SET UP. BASICALLY THIS MEANS THAT IT A BUSINESS LEGAL STRUCTURE. THE FORMS OF BUSINESS OWNERSHIP ARE SOLE PROPRIETORSHIP, PARTNERSHIP, AND CORPORATION.
SOLE PROPRIETORSHIP
SOLE PROPRIETORSHIPS ARE THE MOST COMMON FORM OF BUSINESS IN THE UNITED STATES AND CANADA. A SOLE PROPRIETORSHIP IS A ONE PERSON BUSINESS AND THERE IS NO DIFFERENCE BETWEEN BUSINESS AND OWNER. THE OWNER OF A SOLE PROPRIETORSHIP IS RESPONSIBLE FOR LIABILITIES AND BUSINESS DEBTS.
CORPORATION
THE MOST EXPENSIVE TYPE OF BUSINESS TO FORM IS A CORPORATION. IT ALSO PROVIDES LIABILITY PROTECTION THAN A ONE PERSON BUISNESS (SOLE PROPRIETORSHIP). THERE ARE TWO TYPES OF CORPORATIONS. THESE TWO TYPES OF CORPORATIONS ARE PRIVATE AND PUBLIC. A PRIVATE CORPORATIONS DO NOT PROVIDE SHARES TO THE PUBLIC. PUBLIC CORPORATIONS ON THE OTHER HAND TRADE SHARES ON STOCK EXCHANGES SUCH AS THE NYSE (NEW YORK STOCK EXCHANGE).
PARTNERSHIP
A PARTNERSHIP IS WHERE TWO OR MORE INDIVIDUALS PUT TOGETHER THEIR RESOURCES AND SHARE THE PROFITS, DEBTS, AND LIABILITIES OF THEIR BUSINESS. THERE ARE LIMITED PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS. LESS THAN 10% OF BUSINESSES IN NORTH AMERICA ARE PARTNERSHIPS.