Various Business Forms
Business can be of various types and sizes. It can be as simple as selling some garments working from home or can be complex and huge like designing high-level machinery parts. Big or small every business plays an important role in the society we all share. Business does not only provide income for the businessman but also provide goods or services needed by the customers helping them with their daily needs.
Business can be of different types and based on how the owner chooses to set it up can affect its legal accountability. Business forms can be commonly categorized in following forms:
1) Sole Proprietorship: This form of business is set up to be owned by only one person. It is the least costly and very easy to set up a form of business. Owner of this form of business has to face extensive liability. This means that the lenders can go after the owner’s personal assets if the owner is not able to repay the creditors. This form of business is usually seen in small business. This form also gives the owner the freedom to set up his business as per his choices. With little guidance, the owner can set up and carry out the business efficiently. The owner can choose to make use of advanced software to make appropriate decisions for his own business. Like when trading in cryptocurrencies the QProfit System can be very helpful.
2) Partnership: This form of business is set up to be owned by one or more persons. These partners provide resources to the business. The profit that incurs from the business is divided amongst the partners. The general type of partnership comes with unlimited liability for all the partners. In the limited type of partnership, the lenders cannot take away the private assets of the limited partners.
3) Corporation: It is a form of business that has its own legal personality other than its owners. A stock corporation represents the ownership in shares of stock. The stockholders face limited liability but their involvement in the company’s working is also very limited. These stockholders elect the board of directors amongst them to handle all the activities in the corporation.
4) Limited Liability Company (LLCs): It is a combination form of business that show features of a corporation and a partnership form of business. The owners of the LLCs face limited liability like any corporation. An LLC has a choice to be taxed as a partnership or a sole proprietorship or like a corporation.
5) Cooperative: This form of business organization is usually owned by a group of members. A cooperative business is run for the mutual benefit of the owners. The owners of the cooperative groups are called member. It can be incorporated or unincorporated. Examples of cooperative business can be cooperative banks.