CheckPoint - have to buy stocks to invest into the company...

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The difference a proprietorship, partnership, and a corporation is that in a proprietorship this is owned by one person who is solely responsible for the company. In a partnership, it is two or more people who are making equally the decisions about the company. In a corporation, it is a group of stockholders who are really running the company. An entrepreneur would want to choose one over the other because it will help their business in one way or another. If the entrepreneur chose a proprietorship, it is because they want sole ownership of the company to be able to make all the decisions without interference. If they chose partnership, it is because they do not have enough resources to start the business or even to expand it into more than just one location. Maybe they want to have several locations. Finally, one would choose a corporation because you
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Unformatted text preview: have to buy stocks to invest into the company. The stocks can be traded or sold off to others if you no longer want to be a part of the ownership. There are also different tax benefits and liabilities depending on which one you choose. If I was starting a business, depending on the type of business I choose to start would determine which of the three I would choose. If it was a small startup business then I would become a sole proprietor. With being a proprietorship, I do not have to report to anyone, share any profits, and I get some good tax benefits. Knowing I will be liable for all the debts of the company, eventually I would turn it into a corporation once we become big enough as a company....
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