Type of Businesses

Prop. / Part. / Corp.

Different Businesses

There are three different types of businesses today in the US. The three types are solar proprietorship, partnership, and corporation. Each of these offer different advantages and disadvantages to people.

Lauren Hyde

Advantages:

Proprietorship:
  • the sole proprietor has full pride in owning the business and receives all the profits; they can make decisions quickly without consulting anyone; pay no income tax

Partnership:

  • pride of sharing ownership in a business; partnerships usually raise more money; they can always take in more partners to provide funds needed; pay no income tax; larger in size

Corporations:

  • expensive & complex to set up; business owners have very little so say in the management of the business; difficult to unite stockholders to force the managers to act in a particular way; subject to more regulation by government then other businesses

Disadvantages:

Proprietorship:
  • unlimited liability, or complete responsibility for all debts and damages arising from doing business; to pay the debt the person’s assists are to be sold

Partnership:

  • the legal structure is complex (when a partner is removed a new agreement is made); owners have unlimited liability; fully responsible for all debts of the partnership

Corporations:

  • expensive & complex to set up; business owners have very little so say in the management of the business; difficult to unite stockholders to force the managers to act in a particular way; subject to more regulation by government then other businesses