Different Forms of Business: Exploring Definitions and Scenarios

There are five standard business entity types, and each will have pros and cons from a business and tax standpoint. You will need to select which entity you will be, and file the correct legal paperwork at the onset of your new venture. The five business entities are:

The purpose of this report is to investigate the challenges of setting up a business and the difference between the major forms of business; particularly, niche markets as compared to the larger mainstream markets.

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

When anyone thinks of business, shopping is most likely at the top of that list, if there even is a list. A person enters a department store, specialty store or a grocery store, selects an item or more then proceeds to checkout. A form of currency is exchanged and voilà, business has been done. When children are asked what a business person does, the usual reply is that a business person wears a suit and rides a train to work. While the everyday child and the Average Joe may be seen as business knowledge novices, they certain have heard many key words in business formations. An example would be a professional sports athlete. The agent works on behalf of the athlete and has a contract detailing the work and the compensation received. Joe the sports fan is well aware of this type relationship but probably doesn’t know that Agency is the business term used. Agency and its application will be covered later. Business also has different types of organizations, to include partnerships, franchises and corporations. How these entities can be formed, their types and the powers they hold will be discussed. It is also important in business to know who is in charge, who runs the business and who can decide what the business will do in the present and the future. While all these terms and ideas are exciting, the most exciting entity in business is money. Everyone wants to make lots of money and the right business can help to achieve that goal. The finances,

This business would be a sole proprietorship. A sole proprietorship is a business that is run by one single individual. I would be the owner of this small shop showing that it is a sole proprietorship. We will hire workers to do other jobs that are in our business. They will be assigned tasks that I may not be able to do.

A sole proprietor is one individual business that is not, like a corporation or limited liability company (LLCs). It does not have to be registered with the participating states in order to be existent; conferring to the Internal Revenue Service (IRS); in 2008, more than 22.6 million sole proprietors existed in the United States (Staff I., N.d.). A sole proprietorship type of business is the easiest to form, however, it is also the easiest to forget to register with the local government which is required, acquiring a business license, and paying income taxes (Staff, I. N.d.).

As discussed there are three different types of businesses, sole proprietor, partnership and corporations. With these businesses come many advantages and disadvantages that one will have to determine will best suit their own lifestyle. Starting a business is something very serious to plan and make sure you have the necessary financial backing to keep it running, and have the legal knowledge to keep yourself and organization covered. Lastly, if you have the knowledge and product you know something about and have the background the business could become successful and the more know how could make running a business less stressful.

There are a number of forms of ownership that the business can take. The main forms are sole proprietorship, partnership, Limited Liability Corporation, corporation and S corporation. There are advantages and disadvantages to each of these forms that will be discussed in this section. A sole proprietorship essentially has the person as the business. In this situation, the proprietor bears all of the risk involved in the business. Business income flows through to the proprietor's personal taxes. For some individuals there are tax advantages, but for many the appeal of the sole proprietorship is its simplicity. The IRS defines a partnership as a relationship existing between two or more individuals who joint to carry on a business. Partners divide income according to their own agreement and that income flows through to their personal taxes. Partners also have a high level of liability for any legal action that befalls the company.

A sole proprietor is the most modest and common structure chosen to start a business (SBA, 2016). Someone who owns an independent business is usually a sole proprietor. They are no legal action needed to form a sole proprietorship. Sole proprietors are entitled to all profits and are responsible for all your business’s debts, losses and liabilities (SBA 2016).

Sole proprietorship refers to a situation when a business is owned by one person. It is normally the simplest way to initiate a business since the sole proprietor is fully responsible for all the activities and operations. In addition, he or she is responsible for all the obligations and debts related to the business. Therefore, all the profits go either to the sole proprietor or are injected back in to the business as investment. It is characterized by unlimited liability, which means that a creditor with a claim against the

•A sole proprietorship is the most common form of business organization. It 's easy to form and offers complete managerial control to the owner. However, the owner is also personally liable for all financial obligations of the business.

Agency can be described as the fiduciary relationship involving two parties in business with one being under the control or obligation of another. In this case, the relationship involves an agent who is obligated to or under the control of the other party i.e. the principle. An agency is usually created when a principal requests a person to make delivery as an agent through the establishment of a contract. In most cases, this kind of partnership between a principal and agency is usually imposed through agreements reached by the power of attorney.

A sole proprietorship is a form of business structure that is owned and operated by the same owner simultaneously (Schneeman, 2012).

From the 1990s, the very beginning of the online business has triggered the fast-growing online business platform and in some way totally changed the business model of traditional business. According to the provided explanation, “Business online platforms, enabled by the fusion of Cloud Computing, SaaS and BPO innovations in an integrated singular managed service, are emerging rapidly.” Therefore, it is clear that a platform is a special place being provided for both the customers and suppliers or sellers to share information and resources, the efficiency of information exchange should be enhanced, so that the load of information switching can be accelerated. Given the facts that there are more and more enterprises starting to pursue the

The type of this business is Individual Proprietorship. This type of business entity is owned and run by an individual. In this type, there is no legal distinction between the owner and the business. Since this is the simplest among all the types of business, I chose to run this type.