Business Ownership And The Four Forms Of Business

A business operates under conditions that is suitable for ownership, with these conditions business can operate under the guidelines. These forms are designed for business to be responsible any actions that occur in the business, agreements between partnerships and laws. It’s the most important decision entrepreneurs make when they start a new business this effects their establishment and operations

To understand the four type of business forms I compared and contrast the four business formats which are a sole proprietorship, general partnership, corporation, and limited liablilty company (LLC), also why he or she should select one form over another.

A sole proprietorship is a type method designed for single business owner. A business

This is a firm to be considered to be a legal entity that is separate and distant from the owners, meaning its established by law and given some legal rights and duties of a human being. It follows rules by governing how it is organized, and how it conducts business which is called corporate by laws. A corporation can act as any business activity, it can enter into binding contracts, borrow money, own property, pay taxes, it can proceed in to legal action (such as law suits) in its own name it can also partner in a partnership or owner of another corporation, there is a longer process obtaining this form there is more paperwork and higher fees, unlike a sole proprietorship and general partnership it requires filing articles and paying filing fees. Stockholders (owners) elect individuals to represent their intrests which is called a board of directors, these directors they establish the missions for the corporation and its objectives. It can also transfer ownership very easy owners sell their stocks they can sell it to the public, however, a stockholder has to sell it to another stockholder if no one is interested then the stock can be sold to the public, so this type of form is required for large company’s such as apple and