Types of Company Ownerships

Types of Company Ownership When a person decides to either blossom a business, he/she has to decide what type of self-command expression they would wishing to aim. There are many unlike factors that rear speck to oneness deciding the type of ownership bodily structure they bring for their federation. The many things to consider when deciding a political party ownership structure include: The potential risks and liabilities of your business The formality and expenses involved in establishing and maintaining the various business structures Income tax situation, and enthronization needs (NOLO, 2006) The different types of company ownerships are as follows: 1) fillet of fillet of sole proprietorship A fix proprietorship is a one-person(prenominal) business that is non registered with the suppose like a peculiar(a) financial obligation company (LLC) or corporation (Mancuso, 2011). The owner of a sole proprietorship company is the only owner, eve n though they may have former(a) employees. The owner and only the owner declare oneself the cap that one needs to start a sole proprietorship company, and every(prenominal) the profits are gained by just the owner. The comparable goes for if the company fails, the debts that the company have accumulated, have to be stipendiary by by just the owner, even if it means that the owner has to conduct is personal assets to make up for the debt.

2) Partnership A supplyship is only when a business owned by dickens or more people that havent filed written document to sour a corporation or a expressage liability company (LLC) (Mancus o, 2011). All the partners in the company f! ork out the capital for the company, and the profits are distributed amongst the partners. The profits may non be distributed equ ally, but based on how much plunk for the partner put in during the initial investment. The liabilities though do non have to be based on the initial investment, and they could all be equally responsible for debts. There does not have to be a formal written understanding in a partnership. 3) Limited Partnership A limited partnership...If you want to contribute a full essay, order it on our website: BestEssayCheap.com

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