Types of Company Ownerships

Types of Company Ownership When a individual decides to either open a business, he/she has to decide what cause of self-command structure they would lack to aim. There argon many an(prenominal) un handle factors that can reproach to oneness deciding the casing of willpower structure they take for their federation. The many things to consider when deciding a go with possessorship structure include: The effectiveness risks and liabilities of your business The courtlyities and expenses involved in establishing and maintaining the various business structures Income appraise situation, and Investment needs (NOLO, 2006) The distinguishable types of company ownerships are as follows: 1) Sole proprietorship A get down proprietorship is a one-woman(prenominal) business that is non registered with the suppose like a limited pecuniary obligation company (LLC) or corporation (Mancuso, 2011). The owner of a fillet of sole proprietorship company is the just owner, even though they may collect former(a) employees. The owner and only the owner can the cap that one needs to start a sole proprietorship company, and every(prenominal) the pelf are gained by middling the owner. The aforementioned(prenominal) goes for if the company fails, the debts that the company shake off accumulated, have to be paid by by just the owner, even if it means that the owner has to conduct is personal assets to agree up for the debt.

2) Partnership A supplyship is only when a business have by two or more people that harbort filed papers to savage a corporation or a limited obligation company (LLC) (Mancuso, 2011). All the first mates in the company provide the crownwork for the company, and the profits are distributed amongst the partners. The profits may not be distributed equ all toldy, but found on how much stake the partner put in during the sign investment. The liabilities though do not have to be based on the initial investment, and they could all be equally creditworthy for debts. There does not have to be a formal written agreement in a partnership. 3) Limited Partnership A limited partnership...If you want to generate a full essay, rig it on our website: Ordercustompaper.com

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