3 Types of Business

Sole Proprietors, Partnerships, and Corporations

Sole Proprietors

It is when a business is owned and managed by one person.

Advantages- It is easy to start-up, and you are the sole receiver of profits made.

Disadvantages- But you are also at unlimited person liability. If the business goes under, you are responsible for the debt left.

An example could be Sweet Pickle, a cute restaurant in Kannapolis which is owned by a lovely woman.

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Partnerships are a business organization owned by two or more persons who agree on a specific division of responsibilities and profits.

Advantages- There is still an easy start-up and now shared decision making.

Disadvantages- You have to share profits and there is potential conflict.

An example would be Carolina's Gateway Partnership that help with economic development and are a partnered business.

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It is legal entity owned by individual stockholders who own stock in the company.

Advantages- There is limited liability for you and more potential for growth.

Disadvantages- There is an expensive start up and there is potentially loss of control.

Cheerwine is a corporation set in North Carolina.

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