Business Ownership

Courtney Garner

Special Types Of Ownership

Specializied Corporations

Subchapter-treats partners as individuals by taxing them once

Limited Liability Company-provides limited liability for owners

Nonprofit corporation- a group of people who join to do some activity that benefits the public

Domestic- charted in a specific state

Foreign- Chartered in one state but doing business in another state

Alien-chartered in another nation but doing business in a state

Public-established by individuals for business or charitable purpose

Examples- Enterprise Rent-A-Car, American Cancer Society

Corporation

*How many owners? one or more,who have one vote

*Who manages? board of director,and shareholders

*How a bussiness is started? Filling of an article of incorporation with state goverment

* Two advantages- Capital easy to obtain. Limited liability for shareholders

*Two disavantages-Double taxation profits and earnings. Goverment regulations.

*Limited or unlimited liability- It may have unlimited lifetime. If needed determined by charter or article of dissolution

*Example- Bank of ,America Corporation, Lowe's Home Improvement Store

*How is the ownership terminated?- If needed by charter or article of dissolution

* The source of investment? Purchase of stocks

Partnership

How many owners? Two or more people

Kinds of partners?Determined by partner agreement

Who manages?Varies by state

How is business started?With a partnership agreement

Two advantages- Easy to form. Work load shared

Two disadvantages- Profits shared. Limited lifetime

Limited or unlimited liability? It is limited

Examples- South Railroad Limited Partnership

How is ownership terminated?Actions of the partners bankruptcy, death

Source of investment?Personals of partners, gifts

Proprietorship

How many owners? One person

Who manages?May be owner

How the business started?Begin buying and selling goods or services

May vary by state

Two advantages?Easy to form. One time taxation

Two Disadvantages? Unlimited lifetime of owner. Limited Capital

Limited or Unlimited liability?It is Unlimited liability

Examples- Answers may vary

How is ownership terminated? Decision or life of owner

Sources of investment? Personal gifts,borrowed, and other may vary