Types of Business ownership

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Special Types of Ownership

  • The general partnership has limited liability and someone has to take full responsibility. Ex: Law offices of Smith & Jones
  • A limited partnership has limited liability and someone has to take general responsibility. Ex: Geo-place
  • A limited liability partnership has limited liability and no one assumes general responsibility. Ex: Walmart
  • General corporation: Visa
  • Close corporation: Google
  • S corporation: Intel
  • Ex: foreign, alien, public
  • Cooperative: Working together or acting willingly for a common purpose.
  • Franchise: The right or license granted by a company to an individual or group to market its products or services in a specific territory
  • Ex: McDonalds

Corporation

  • One or more owners
  • A group of individuals
  • By filing the Articles of incorporation
  • Ownership is readily transferable and has separate legal existence
  • Disadvantages are double tax and manipulation
  • limited liability
  • Ex: Nike
  • the owner sells their shares in the corporation
  • by making profit off of sales

Partnership

  • Two or more
  • Dormant, General, Limited, Secret, Silent
  • A General partner
  • By signing a partnership agreement a getting enough money to get rolling
  • no income tax and easy to establish
  • Shared profits and unlimited liability
  • The owner sales their shares in the company
  • By investing money or using personal savings

Proprietorship

  • one owner
  • the one owner
  • you just start one because they aren't like any of the others
  • gets all of the profit and complete decision making
  • held personally responsible and the decision making is a lot harder for new things
  • limited liability
  • Ex: Subway
  • By stopping the production of the items that you are selling
  • By using loans or money that you put into it to start t up