Types of Business Ownership

By: Macy Carrick


2 period

Business and Finance

Big image

Special Types of Ownership

Types of Partnerships

  • Dormant: not active, unknown, unlimited liability
  • General: active, known, unlimited liability
  • Limited: not active, known, limited liability
  • Secret: active, unknown, unlimited liability
  • Silent: not active, known, unlimited liability
Types of Corporations

  • S- Corporation: treats partners as individuals by taxing them once
  • Limited Liability Company (LLC): provides limited liability for owners
  • Nonprofit Corporation: a group of people who join to do some activity that benefits the public (example- Goodwill)
  • Domestic: chartered in a specific state
  • Foreign: chartered in one state but doing business in another state
  • Alien: chartered in another nation but doing business in a state
  • Public: established for a governmental purpose
  • Private: established by individuals for business or charitable purposes
*Cooperative- owned by members, serves their needs and is managed in their interest

*Franchise-permission to operate a business to sell products and services in a set way (examples: McDonald's, Burger King)