Types of Businesses

Dylan Briggs


  • Owned and operated by a sole, or single person.


  • The proprietor has full pride in owning the business and receives all the profit.
  • The proprietor can make decisions quickly without having to consult with a co-worker or boss.
  • The proprietor has unlimited liability, complete responsibility of the business.
  • The difficulty of attract qualified employees.



  • Takes 2+ people to operate.
  • Legal agreement called Articles of Partnership identifies how much $$$ each partner will play in the business.
  • Clarifies profits and losses.


  • Pride of sharing ownership in a business
  • Raise more $$$
  • No corporate income tax
  • Each owner often brings special talent to the business
  • Slightly larger size than proprietorship


  • Complex legal structure; when a person is added or removed, a new agreement must be made
  • · Unlimited liability (each owner is fully responsible for all the debts of the partnership)
  • If company is sued and other owners cannot pay, you could be required to pay 100% of damages


  • Charter – government document granting permission to organize
  • Specifies amount of stock that will be issued.
  • The corporations uses the money received from selling stock to setup and run the business.
  • The stockholders elect a board of director to act on their behalf.
  • The board hires managers to run the corporation on a daily basis.
  • The ease of raising financial capital.
  • With the ease of raising capital corporations can grow huge.
  • The board of directors can hire professional managers to run the business.
  • The ownership of the corporation can change easily.
  • Limited liability


  • They often are expensive and complex to set up.
  • The business owners have very little say in the management of the business.
  • Corporations are subject to more regulations by government.
  • Stockholders are subject to double taxation, or paying taxes twice on corporate profits