Types of Businesses
By. Marquez Rosebure
You don't have to pay corporate income tax.
You have that pride of owning your own business.
It's hard for Proprietors to raise financial capitol to make their business grow.
The most Common type of business.
Article of Partnership
There are two types of Partnerships:
A limited partnership is formed by two or more people, with at least one person acting as the general partner who has management authority and personal liability, and at least one person in the role of limited partner who is a passive investor with no management authority. All partners – both general and limited – must enter into limited partnership by either oral or written agreement.
You pay no corporate income tax.
Running your business is a lot easier than a proprietorship.
You have a greater borrowing capacity.
The liability of the partners for the debts of the business is unlimited.
Each partner is jointly liable for the partnership's debts. Each partner is liable for their share of the partnership debts as well as all other debts.
There is more risk in disagreements and complications in making decisions.
It also specifies the amount of stocks that the corporation will have.
People who buy stocks from the company become stockholders of the company, which means that they become part ownerships in the corporation.
Liability is limited.
You have the ability to raise investment money.
Employees has benefits
One of the most preferred types of businesses
More heavily taxed in income
Pays taxes in profits
They are subject to more regulation by the gov. than the other forms of business.
They must release certain reports on a regular basis which gives out things like financial information about the company.