Type of Businesses
Partnership
All owners have unlimited liability - they are responsible for the debts of the business
Corporation
Because shares in this type of business are sold, it is easy for these businesses to raise finance
Corporation
Company does not dies if owner passes away
Partnership
Consists of 2-20 owners
Corporation
Decisions are more difficult to arrive at
Corporation
Formation expensive
S Corporation
Has corporation benefits
Corporation
In public company, shares are sold on the stock exchange
Sole Proprietorship
It is hard to take holidays and there is no sick pay it you work for yourself
S Corporation
Like LLC, but has more information in its case law
LLC
Limited liability
Corporation
May become too large to manage effectively
LLC
More discussion and consultation
LLC
Owner can retain control
LLC
Owners have limited liability - they only stand to lose what they invest
Corporation
People buy shares in this type of business
Partnership
Running of the business is between partners making it easier on the owners
Corporation
All accounts must be published. This means anyone can see how much money you make and what you own!
Partnership
A disadvantage is that owners could disagree on decisions
Corporation
A lot of administrative work required
LLC
A lot of administrative work required
Corporation
Sometimes profits are distributed to shareholders. This payment is called a dividend
S Corporation
Taxed like a partnership
Sole Proprietorship
The owner gets to make all the decisions
Sole Proprietorship
The owner has unlimited liability - he/she is responsible for all debts of the business
Sole Proprietorship
The owner keeps all profits
Corporation
These businesses need to be registered with the State and Federal Government
LLC
This type of business employs specialists
Sole Proprietorship
This type of business has just one owner
Sole Proprietorship
This type of business is the easiest to set up
Partnership
To set up, the owners usually sign a Deed of Partnership. How profits are shared will be shown in this document
Partnership
Top examples include dentists, solicitors, and accountants
Sole Proprietorship
Top examples include window cleaners, carpenters, and small shop owners.
LLC
limited growth
Corporation
more capital
LLC
usually family members own shares in the company
