1. Sole Proprietorship
This is a one man business. The owner is entitled to all the profits as well as the losses. He is also personally liable for any obligations or debts incurred by the business. A Singaporean PR or individual looking to start a sole proprietorship must first make an application for the business name. This is done to ensure the name is available and also that Medisave payments have been fully paid. Thereafter, he registers the business in accordance to Business registration act.
2. Partnerships
A partnership is made up of 2 to 20 people. People join together based on similar skill, resources, or ambition. The partners share out the duties, profits, and losses depending of the capital contribution or terms laid out in the partnership deed. They are also personally liable for debts incurred by the business.
NOTE: Since they are not corporate entities, partnerships and sole proprietorship are not required to file annual accounts. However, they are required to renew their registration yearly. They also have to furnish the IRAS with their annual returns.
3. Limited Partnerships (LP)
Limited Partnerships or LP is comprised of an unlimited number of both general as well as limited partners. A general partner who may be an individual or corporation is personally accountable for any liabilities or debts incurred while he is a general partner. Limited partners are only responsible up to a certain limit as specified in the contribution or partnership agreement.
4. Limited Liability Partnerships
Limited Liability Partnerships or LLPs is a merger between partnership and private limited companies. It thus offers more flexibility to the owners. The partner’s liability is pegged on the amount of capital contributed. They are...
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... the debentures or shares to the public, it has to register its prospectus with ACRA.
• Company Limited by Guarantee: These Company will be formed by not for profit organizations. These include trade associations, clubs, charitable bodies, religious bodies, professional societies, among other non-commercial entities.
6. Foreign Company
This is a company, society, corporation, association, or any other body formed outside Singapore. Under the foreign law which allowed the company to be incorporated, it should be possible to sue the company. The company should also be able to hold property.
7. Non-Trading Representative Office
This is a form of foreign company which only operates for a short term. It is usually started to explore business ventures, market surveys, or trade leads in Singapore. The goal is always to test the waters before establishing the company.
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
persons as partnership change to sole proprietorship due to personal case. This will affects the
Liability – The general partners are all responsible for the debts and obligations of the business, but the limited partners are only liable up to their invested amount.
Capital is a major factor for decision making. Since the business involves a group then the three forms of business exposes the group to a greater capital availability. The liability of members is also an important factor. The partnership offers unlimited liability to the members of the partnership while the corporation and Limited Liability Company allows the members limited liability and thus their personal assets cannot be interfered with in the event of a liability. The decision making process is for the business associations but the input of all members results to the making of good and informed decisions. Finally, the taxation practices for various forms of associations informs the decision. Corporations are often taxed twice whereas the LLC and partnership business is taxed
A not for profit organization is a corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive (Legal, 2013).” There are immense community benefits as a not-for-profit generally accepts everyone regardless of ability to pay. Nonprofit organizations are granted tax-exempt status which helps them to provide services to the public and are expected to be effective managers of their finances as well as being efficient (Financial Management, 2010). In doing so, they can gain exemptions from federal and state incomes taxes and have the ability to solicit tax-deductible contributions (Financial Management, 2010). Organization must follow legal financial requirements and always adhere to sound accounting principles that produce reliable financial information (Financial Management, 2010).
Non-profit organizations are everywhere. Wherever there are people there are non-profit organizations. Non-profit, or Not-for-Profit organizations exist to perform or provide services. Whether provided by a public organization or agency, or a private organization or agency, they serve a purpose. Government, educational institutions, community organizations and health care facilities are all examples of non-profit organizations. They are very different in size, some are small neighborhood grassroots organizations with only a few employees and little mo...
Exploring the Types of Business Organisations There are two Business Sectors: Public Sector These are businesses owned and run by the government. Some examples of Services provided in the public sector are the postal service, schools, colleges, housing environment, some bus and train services, fire, police, ambulance and local justice and social services. Their method of raising capital is different as Private Sector businesses have to raise their own capital e.g. their own money, a bank loan etc. The Public Sector business can get the money required from the Treasury or from local rates.
American society has always been optimistic towards their future. The American nation is a capitalistic country. Many individuals are influenced to start up their own businesses with their own ideas. The government helps and regulates all business. There are three types of businesses sole proprietorships, partnerships and corporations. A sole proprietorship would be my best choice to start up my own business. This form of business is the easiest to start. In the states a federal license or permit is needed to sell products or serve a service to the public. A license is required in order to begin the business operation. Income or loss the owner is accounted for on the tax return. “Flow thru taxation” is the term used to state that the owner’s incomes flows through the tax return. I would keep contact daily with my accountant. The business would not be taxed twice as there would be in corporations. It is simply taxed once. I would not need contracts stating two people joining in and making an effort to make a business work as there would be in partnerships. I would just rely on myself. I have better confidence of trusting myself than trusting others in forming a partnership. It is a gamble and a risk to be liable for the entire business. Life is pretty short and taking a risk would either mean it was worth it or you learn from it.
A General Partnership is composed of two or more persons (usually not a married couple) who agree to contribute money, labor, and/or skill to a business. Each partner shares the profits, losses and management of the business and each partner is personally and equally liable for debts of the partnership. In terms of asset protection, general partnerships can be even worse than sole proprietorships.
It is also very easy to form the limited liability partnership. It can be created by forming a partnership deed and is least expensive as well. It can also operate in multi states without getting a new permit for each state. A limited liability partnership can be formed with agreement and all or some partners may have limited
Sole tradership is when the business is fully owned and managed by one person, though others can be employed to help run the business. As the sole traders only financial income is from the business and/or bank loan, they do not have the resources to expand and cover regional or national areas. These types of businesses are located in the small business sector and usually cover local areas. Such businesses could be hairdressers, corner shops or market stalls etc. Sole traderships have unlimited liability so if the business fails to pay its debts the financial responsibility falls on the owner/s to pay the debts in full even if they have to sell their business, personal possessions and assets.
...uires the partnership to state who all the partners were at the time the cause of action arose. S28(1)(b). It provides that a partnership can be sued in any area where it has business premises or where one of the partners resides
a company which is incorporated in Mauritius or has its Central Management and control in Mauritius
Before a partnership formation is imminent, the business needs to decide on which type of partnership to form. There are three types of partnerships: (1) general partnerships, (2) limited partnerships, and (3) joint ventures. All three partnerships contain two or more owners, but all partners assume equal division of ownership, liabilities, and profits in a general partnership. Limited partnerships offer limited liability protection based on each partner’s contribution percentage. Joint ventures are classified as general partnerships with limited existence periods. Once a type of partnership has been determined, the business fulfills a series of requirements before the partnership can be successfully formed. The first step is to register
The definition of a sole proprietorship is essentially a business that is run by one person and owned by that person as well. Specifically, a sole proprietorship is separated from the other business entities because of the specific the legal dynamics between the business and the owner of the business. Moreover, because of this factor, sole proprietorships are usually easy to both form, maintain as well as dissolve if need be. In a New York Times article, the authors expressed that small businesses are typically sole proprietorships and as such, this is why it was selected as the business entity (1). Furthermore, the aforementioned reasons allowed for a rather rapid decision on the basis that with this entity, there is an ability of the owner to run it how they see fit.