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)
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