By Nicholas Skierkowski
*One Owner who makes all business decisions
*Business profits do not have to be shared with any other owner
*Unlike other business types, sole proprietorships do not have to file separate income tax returns.
Advantage: Simple and inexpensive to open
Disadvantage: A sole proprietorship does not have the liability protection that a corporation offers.
* Makes all decisions and directly affects the success of the business.
* Ultimate responsibility of owner to invest funds in the business
Example: Rosario's Pizzaria
* Sharing of profits and losses
*The very basis of partnership business is good faith and mutual trust
*Mutual contribution of money, property, or industry
Advantage: Easy to set up
Disadvantage: Earnings are split- ultimate liability
*Companies can split up work making jobs quicker and more efficient
*More and better ideas to make products better, achieve more, and make more money.
Example: Everything Natural (in the Summit)
*Two types of franchises
*Franchisors offer assistants to franchises to help grow there business
*Owner/operators do not have to start from the ground up
Advantage: Franchises help business owners be in business for themselves without starting a business from the ground up.
Disadvantage: The initial franchise fee can be expensive
* 1 in 12 business establishments is a franchise
*A new franchise opens every 8 minutes of every business day
*Top franchise business industry is fast food
*No ownership structures, exist by the public for a common good
*The oversight of non-profit organizations remains with the board of directors or trustees.
*Required by law to file annual reports with their state and tax returns with the IRS.
Advantage: Personal gratitude and the aid to society
Disadvantage: Participants do not make money, if so very little
*In 2013 public charities reported over 3 trillion in assets
*Protection from personal liability
*Dominate the U.S economy
*Provides a way for individuals to run a business and to share in profits and losses
Advantage: Corporations have full legal capacity to enter into a contractual agreement on their own behalf.
Disadvantage: Corporate level tax
*Most large corporations select Delaware as their state of incorporation because of its sophistication in dealing with corporation law.
*A promoter will often start a corporation in getting capital, financing, etc.