Types of Business Ownership
By Leon Jacob
Sole Proprietorship
Advantages:
- The sole owner receives the entirety of the business's profits.
- This type of business is easy to set up, and does not cost much to operate.
- The owner is personally responsible for all the risks the business entails.
- "Most of these businesses close down if the owner dies or runs out of capital" (Hodgetts 1).
Policies and Regulations: An entrepreneur who wishes to set up a sole proprietorship is usually not bounded by legal restrictions.
Facts: A sole proprietorship is the type of business we think of when we hear the term "small business". These are very common in many industries that do not require too many employees, such as farming (Hodgetts 1).
Examples: My dad actually owns and operates a small business, myQBook. It is an online math enrichment program for elementary and middle school kids. This business started off as a sole proprietorship.
Partnerships
Partnerships
Advantages and Disadvantages
Disadvantages: The partners are still personally responsible for the risks assumed with the business.
Facts and Examples
Limited Liability Company (LLC)
Works Cited
Glencoe. Business Plan Project Workbook. New York, NY: McGraw Hill, n.d. Print.
"Limited Liability Company". The U.S. Small Business Administration. n.p, n.d. Web. 19 September 2014.
Reference180.com. "What is a Corporation?" . YouTube. Reference180, 22 April, 2013. Web. 17 September 2014.