A sole proprietorship is a small business that is solely owned by one person. This means that allof the debt and equity a business like this gain is applied directly to the owner. If you are a freelancephotographer, a craftsperson who takes jobs on a contract basis, a salesperson who receives onlycommissions, or an independent contractor who isn't on an employer's regular payroll, you areconsidered a sole proprietor. These small businesses are managed much like they are owned. They are asmall business that is managed and operated by the owner.Partnerships are different from sole proprietorships in they are usually owned by partners whoshare the profits and losses received by the business. These types of business are usually favored overcorporations for taxation purposes. Business partnerships are generally formed by accomplishing thefollowing things:1.List the amount of equity to be invested by each partner.
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Business, Business Law, Debt, Corporation, partner, Types of companies, Legal entities