Type of Businesses

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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


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