While establishing a business it is quite evident to choose the right structure for it, so that you can easily manage various aspects of it. Kind of business ownership we are going to liable for our business put on a greater impact on how it is being organized taxed and handled. There are basically different types of ownerships from where you can easily choose the one for your business for deciding how it is being structured. For helping you in with your accountability and attorney we are here providing you different types of business ownership for you:
Sole Proprietorship: It is one of the simplest and most common kinds of business ownership where a single individual engages all the business activities without having any interference of formal organization. It is actually a single person business that is usually not being registered with the state. It is a straightforward form of business where one doesn’t need to take opinions of others for their business.
Partnership: Partnership is generally being created among two or more persons associated with a particular business for profit. It is generally being created in accordance with a partnership agreement. Partnership is usually of two types: General Partnership and Limited Partnership. General Partnership is usually being performed among two individuals in whom each of them will operate as partners for business. Limited Partnership is usually being created among two or more individuals where each partner is liable only for the amount of money that he/she has invested for business.
Corporation: Corporation is usually a legal person, separate from its owner that owns limited liability, centralization of management, ease of transfer ability and perpetual duration for the ownership interests. It is usually being performed by filling documents with the state government. The owners of a corporation are termed as shareholders and the person that manages the business are known to be the directors of the organization.
Non-Profit Corporation: Non-Profit Corporation is generally run for the benefits of the general public. This organization is usually established to benefit population like a handicap, mentally ill, animal population and various others. Such organizations generally offer several tax exemptions along with some other benefits as well.
S Corporation: S Corporation is a federal tax election that is also known as a pass-through entity for tax purposes. Usually, a for-profit corporation selected as taxed as S Corporation fills an election with Internal Revenue Services. S Corporation is generally restricted by Federal Law in terms of the number and types of shareholders who own stocks here.
Syndicate: Syndicate is usually a group of people who organizes and manages the business altogether to transact specific business goals. Syndicate is actually a great example of business ownership to promote common interest on filing scale.
LLC: LLC is an acronym being used for Limited Liability Company. It is an attractive business structure for all those who are not willing to have any personal liability for company losses. The ownership usually comes up with various benefits including the ability to operate as a sole person.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin