Business Ownership

Corporations

Partnership

LLC Limited Liability Corporation

sole proprietorship

Sole Proprietorship

Easy to Start and End- Sole Proprietorship is the simplest and easiest to start. When you want to close the company its easy you don't need to pay any extra experiences plus very little paperwork.

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Pleasure Of Ownership-A individual successful in Sole Proprietorship is proud of their work. They were able to solve problems on a everyday basis.

General Partners- a person who assumes full or shared responsibility for operating a business.

In 1990, Janet Smith and Gary Smith started IVY Planning Group Company.

Advantages

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The Limited Liability Corporation type of organization provides more management flexibility and fewer restrictions when compared with corporations. A corporation, for example, is required to hold annual meetings and record meeting minutes; an LLC is not.

Forming a Corporation

Where to Incorporate

An advantage of LLC, they enjoy pass-through taxation.

the corporate charter

A business that is owned by one person

Stockholder's Rights

Most advantages of sole proprietorship arise from the 2 main characteristics of simplicity and individual control

Corporate Ownership- When a corporation forms it might sell stocks to the public or other corporations. When a corporation sell stocks to only a few people they are know as a Closed Corporation. When a corporation sell stocks to the public they are know as a Open Corporation.

LLC (Limited Liability Corporation) is a type of business ownership that merges the advantages of a corporation and a partnership while avoiding some of the limitations and obstacles of those forms of ownership.

The cheapest way to start a business is a sole proprietorship

Sole proprietorship gives you access to being your own boss

the owner gets taxed so they have to report any financial information of their business

sole proprietorships don't usually get bank loans

Strong Profit Gain- Since they created the business they get to keep most of the profit they make. If the company is successful the more money they make

Less Taxes- Every business has to pay taxes but since they created sole proprietorship they don't have to pay taxes to state and federal income tax

You are your own Boss- You can make up the hours, locations, pay, etc.

An LLC is not restricted to 100 stockholders - a common disadvantage of the S-corporation.

Its difficult to get people to work for you

All profit of the business become their personal earnings

Its hard to put your business out in society

If you are a successful sole proprietorship you will be recognized for your accomplishments

organizational meeting- meeting where incorporates and original stockholders elect the first board directors. This which board members are in charge of the stockholders operate the firm.

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If you are the sole proprietor you can do whatever you want

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Disadvantages

Larger Debt- You are the owner so that means any money you overspent( Debt) so you need to pay it all off when your company closes or when they ask you to.

May not last forever- If the owner of the business dies, or retires the business stops existing.

ADVANTAGES

DISADVANTAGES

Money Issues- Banks are unwilling to give large amounts of money to Sole Proprietorship because the business may not be successful and it will take them longer to get the money back. Plus if they don't get the money( the business starters) they are unable to start their business.

Advantages

Less Management Skills- The Sole Proprietorship is usually the Manger. In being the manager they need to know how to be the salesperson, buyer, accountant. Some individuals are unable to do this.

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An LLC has fewer Internal Revenue Service tax regulations than a regular C-corporation and S-corporation.

LLC has an advantage of personal asset protection.

  1. Proprietorship, partner ship, corporate, or some special form of worship
  2. Partnership agreement
  3. Incorporating a business
  4. Registering stock
  5. Trade mark, patent, or copy right
  6. Licenses or permanents at the local, state and federal level
  7. Purchasing existing business or real estate
  8. Creating valid contracts
  9. Employees independent contractors
  10. Credit and collecting debt
    Articled of Incorporation
  11. Name a address
  12. Incorporators' names and address
  13. Purpose of corporation
  14. Maximum amount of stock, types of stock to be issued
  15. Rights and privleges of stock holders
  16. Lengnth of time to the corporation is to exist

The Partnership Agreement

Harder Time To get Employees- Since you are barely starting your company you may have not of made a big name of yourself, as a result of this is it is harder to get employees. Plus they start of with low wages because you haven't made a lot of money yet.

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25 years later the company is now a multi million company

Types of partners-All partners are different some might be limited to one role where as others are committed in running the business.

Limited partners- A person who invests money in a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership.

Partnership- a voluntary association of two or more persons to act as co-owners of a business for profit. (U.S Uniform Partnership Act)

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