Business Organizations

Business Organizations - Business Report 1...

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Business Report 1 Business Organizations Characteristics, Advantages and Disadvantages Brian Culver 10/13/2008 Listed are the different types of businesses and the characteristics, adv a disadvantages of each.
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Business Report Listed below are the six different types of businesses and the characteristics, advantages and disadvantages of each. Sole Proprietorship – Any business that has no legal separation from its owner. o Liability – The owner is solely responsible for the debt of the company. Your personal assets are not protected from a judgment against your business. o Taxes – All profit and losses will be filed on your personal income tax. The business does not file a separate income tax return. o Continuity – Business ends when the owner stops doing business, or upon their death. o Control – The owner is in complete control of the entire company. You do not sell stock shares, so you are the sole owner of the company. o Profit Retention – The owner retains all profit made by the company. Because there are no share holders you do not divide the profit amongst anyone. o Location – There are virtually no limitations on the company’s location.
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Business Report 3 o Compliance – There are no requirements to register your business with the state. General Partnership – Similar to Sole Proprietorship, except there are two or more owners. o Liability – The owners are jointly responsible for the debt of the company as described in the partnership agreement document. Personal assets are not protected in case of a judgment against the business. o Taxes – The owners will file on their personal income taxes. Profit will be divided as described in the partnership agreement. o
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Business Organizations - Business Report 1...

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