201 Types of Business Ownership

<3 By: Kayla Kellam February 17, 2016 POBF <3

Special Types of Ownership

  • Sub-chapter S (S-corporation): treats partners as individuals by taxing them once.
  • Limited Liability company (LLC)- Provides limited liability for owners.
  • Non-Profit Corporation: a group of people who join to do some activity that benefits the public. Example:(Goodwill)
  • Cooperatives: Owned by members, serves their needs and is manged in their interest.
  • Franchise: Permission to operate a business to sell products and services in a set way. Example:(Subway,McDonald's,Seven Eleven)
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Corporation

  • Owned by one or more share holders
  • Manged by board of Directors
  • By Filing and article of Incorporation with the state
  • Advantages: Easy to obtain capital,Limited liability for share holder's
  • Disadvantages: Double Taxation, Increased government regulations
  • Limited Liability
  • Example:(Walmart,Target,Starbucks,Nike)
  • Unlimited life
  • Stock and bond Market

Partnership

  • Two or more owners
  • Dormant, General, Limited, Secret, Silent
  • Determined by partner
  • Started by Partnership agreement
  • Advantages:(Easy to form, Work load shared)
  • Disadvantages:(Profits shared, Limited lifetime)
  • Terminated by actions of Partner's, Bankruptcy, Death and or court order
  • Investment: Personals of partner's gifts, borrowed and others may vary
  • Examples:Hairstylist, Lawn Services

Proprietorship

  • One Person
  • Manged be owner
  • Formed by buying and selling of goods and services
  • Advantages:(easy to form, complete control of business)
  • Disadvantages:(Limited capital,unlimited liability)
  • Terminated by decision or life of owner
  • Investment: Personal, gifts, borrowed, and others may vary