The Legal Forms Of Business

| A general partnership is comprised of a group of two or more individuals who enter into an agreement to start a business. The partners and the business are legally the same. The partners enter into an agreement called the articles of partnership and are typically equally active in the business and the business’s management, unless otherwise stated in the partnership agreement. All profits and losses are shared by the partners in a joint business venture.

Sole proprietorships are the most common type of business in the U.S. They are most commonly chosen because they are the easiest type of business to set up and give the sole owner of the company complete control of the company. There are many benefits to a sole proprietorship in regards to control, profit retention, and convenience.

partnership to continue, in the event a partner withdraws from the group. Similar to sole proprietorship, general partnerships tend to have a difficult time rounding up funding and resources, since most of the necessary capital comes from each partner's personal assets. This in turn may hinder longevity and growth of the organization. 4. Control In a typical general partnership, all partners will have equal rights and control over the business. It allows any partner to act on behalf of the business to make decisions and negotiation with

Control- The general partner(s) maintain control of the business. They have equal authority unless otherwise specified in a agreement. The limited partners do not maintain any control in the partnership.

A Partnership is a business form that consists of two or more individuals. There are two types of partnerships; general and limited. General partners are liable for the full extent of debts and obligations within the business. Limited partnerships provide individuals with a limitation of responsibilities in the organization’s liability; this type of partnership is dependent upon the investment percentage. Advantages of partnerships consist of cost efficiency, shared financial responsibility, complementary skill association, and offer employees partnership incentives. Disadvantages of partnerships are joint and individual liability, disagreements between partners, and shared profits (“U.S. Small Business Administration,” 2013).

After the creation of a business plan, the next step to operating a business is the selection of an appropriate business structure. Different legal forms of business ownerships affect different managerial and financial factors from the business names to the tax obligations (Gregory, n.d.). The most common forms are sole proprietorship, partnership, cooperatives, and corporations. There are different types of corporations in the business world, but the two most general corporation types are S Corporation and Limited Liability Company (LLC) (Ferrell et al., 2013). The sole proprietorship is the easiest and most basic form of business ownership. It is owned and run by one individual, which is the proprietor. The individual is entitled to all profits and is responsible for all the business’s

Having discretionary time, more contacts, support and motivation is a big plus when starting a business. The right partnership has these qualities. When one needs time to spend with family and friends or even just to get the most important things dealing with the business done, having a partner is a good ideal because days or weeks can be rotated among the two. By bringing on a partner, you acquire a new network of contacts and potential customers. If one partner was to died or become physical impaired while in the partnership agreement the other partner can take over the business completely or choose to sell the other partner’s half of the business (Price, 2012). With sole proprietorship if the owner becomes impaired or dies the business can result in termination because there is no one to take over the business (LaMance, 2013)

The three major forms of business ownership in the United States are proprietorships, partnerships, and corporations. Proprietorships, sometimes called sole proprietorships, are business ventures owned by an individual who personally receives all profits and assumes all responsibility for the debts and losses of the business. The owner is in total control and it is

A partnership is a business organization where the partners own the business together and are

The limited partnership agreement will set forth the transactions that managers and investors can approve. This document also states the how earnings and losses will be distributed among the partners. Limited partners have also the right of being informed by general managers about the business performance and the business financial status. If Susan or Monica wants to admit a new partner, the new candidate to operate the business can be included if Vic approves this, unless the agreement document states otherwise. Limited partnership is easy to set up, and to appeal investors as limited partners. This

If someone decides they are education enough in the business they are opening, sole proprietorship is the way to go. The most common and easiest from of business is sole proprietorship. Now what exactly is a sole proprietorship? A sole proprietorship is a business ran exactly by one person. Just about anyone can do this, for example someone can be selling their own personal artwork. This might not exactly be a business, but that single person is running it, and is their own boss. Seen in the eye of others this will be seen as a sole proprietorship. Next is the formation of a sole proprietorship. Starting a sole proprietorship is not difficult at all. A name must be registered, which is not a hard task to accomplish. Then the business must be registered and receives a license and or certificate. Finally a small tax must be paid, which will not be a significant

Partnership. There are at least two types of partnerships: general and limited. General partnerships are virtually the same as a sole proprietorship, with the exception of additional owner(s). They are essentially sharing the unlimited liabilities of the firm. Most of the benefits and disadvantages are very similar to a sole proprietorship, except that there is also the oral or written agreement that exists between the partners (Keown, Martin, & Petty, 2014).

A sole proprietor is a business owner with no partners in a small business, retaining all profits and income. It is the most common way of beginning a business structure due to the ease of startup for small unincorporated businesses. In her article “Sole Proprietorship—Is this Popular Business Structure Right for You?” Caron Beesley states the statistic that over 70 percent of U.S. businesses is owned and operated by sole proprietors. It is quick and requires little to no startup capital and licensing. There are minimal initial product costs too. Including using personal items an owner may purchase or have collected over time. They can use a computer from home as a point of sale machine and decorations. Usually, sole proprietors freely mix their business with personal assets. They file taxes in that way as a simpler preparation, as well as, handle checks and banking in their own name. There is no separation existence between the sole proprietorship and sole proprietor.

Ordinary partnership is 2 or more business partners starting a venture together, but in an ordinary business partnerships share the responsibility of the business. The profit is shared between the partners equally depending on how many partners there are.

The sole proprietorship is both the simplest and most common type of business operating in the United States today. Most businesses that are owned and operated by a single person take this form. Small business owners who have sole ownership of their business are automatically considered under this business type if they do not take steps to establish themselves as another type of business. The important feature of a sole proprietorship is that the law makes no division between the person, the sole proprietor, and the business. That is why one is held personally liable for any and all circumstances.