Types of Business Organizations
A sole proprietorship has a single owner, who takes all the risk and receives all the profits. A sole proprietor can work as an independent contractor or operate a small business. A bookkeeping business caters to the financial needs of other businesses. A bookkeeper posts a company’s revenue, expenses and other financial data to an accounting system. This gives businesses owners accurate financial information concerning their business.
A partnership divides the risks and profits of a business among two or more people. Professionals such as doctors and lawyers often form partnerships.There are two types of partnership structures, general partnership and limited liability partnership. With a general partnership, the business owners are personally liable for business lawsuits and business debt. For a limited liability partnership, the business owners are not personally liable for business lawsuits and business debt. Partnerships are easy and inexpensive to form.
The most difficult to raise financial capital.
Has the benefit of specialization.
This is the most common business.