After watching the “Your Business Structure” and “Corporate Business Structures” videos I learned that there are three basic types of business structures such as a corporation, proprietorship, and sole proprietorship. There are different types of partnerships; however the general and limited are mostly used. All business structures have advantages as well as disadvantage; the most important tasks is identifying what type of business structure is right for your business.
A large businessman would not want a sole proprietorship; because this business structure holds the business owner is personally liable for all responsibilities of the business. However it is looked at a businessman has to identify which business structure is best for their company and this paper will expound on the advantages and disadvantages of the business structures. (usually not a married couple) Types of Business Structures
As stated above there are several business structures such as corporations, proprietorship, and sole proprietorship. A corporation is the most complex business structure of the three business structures. There are general corporations, Subchapters, S corporations, and limited liability corporations. An advantage of a corporation is that your individual resources are not threatened from business liabilities; however the disadvantage is that this business structure is more complex and difficult to run.
The Essay on Business Structures Advice
... different types of business structures and they are sole proprietorship, partnership and Corporation. So therefore when starting a business one has several options in the type of business structure they ... can use. A sole proprietorship is ...
A proprietorship not registered and is just like a limited liability company or corporation. The business owner reports gains and losses on their individual tax return. This business owner is held legally responsible for downfalls of their business, just like a sole proprietorship. A General Partnership is made up of multiple individuals who come to an agreement to provide labor, money, or professional skills to that business; however these partners are typically not married.
In this partnership all partners have gain and lose the same amount and there is a legal agreement. A sole proprietorship is the most stress-free and low-cost business stricter of the three. The business owner has total control over their business as a sole proprietorship. The advantage of this structure is that it is the easiest business structure to start up. The disadvantage is the owners are held legally responsible for everything and most investors do not want to invest in sole proprietorships.
