Types of Company Ownerships

Types of Company Ownership When a person decides to either dependent a business, he/she has to decide what type of self-command twist they would wishing to aim. There are many unlike factors that stinker speck to oneness deciding the type of possessorship grammatical construction they bring for their federation. The many things to consider when deciding a lodge ownership structure include: The potential risks and liabilities of your business The formalness and expenses involved in establishing and maintaining the various business structures Income tax situation, and investment needs (NOLO, 2006) The different types of company ownerships are as follows: 1) mend proprietorship A fix proprietorship is a one-man(prenominal) business that is non registered with the suppose like a limit monetary obligation company (LLC) or corporation (Mancuso, 2011). The owner of a mend proprietorship company is the only owner, even though they may have former(a ) employees. The owner and only the owner stomach the cap that one needs to start a sole proprietorship company, and every(prenominal) the profits are gained by just the owner. The corresponding goes for if the company fails, the debts that the company have accumulated, have to be salaried 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 twain or more people that havent filed written document to sour a corporation or a restrict liability company (LLC) (Mancuso, 2011). All the partners in the company go away the capital for the company, and the prof its are distributed amongst the partners. Th! e profits may not be distributed equ ally, but based on how much second the partner put in during the initial investment. The liabilities though do not 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 accord in a partnership. 3) Limited Partnership A limited partnership...If you want to contribute a full essay, order it on our website: OrderEssay.net

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