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Different Types Business


Submitted By Peanut2010
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Characteristics of sole proprietorship:
Easy Setup/Capital/Legal Restriction/Equity Investment / Management/Freedom of Action/ Easy Dissolution/Easily Transferable

In this type of business owner can start up easy. It does not have to file any paper work as long as the business is under their own legal name. The personal responsibility of the owner is unlimited. The money that is needed is provided by the owner. If you need more money you cannot sell shares of stock or bring someone else in as a partner. You will have to borrow the money yourself. Since there are no legal formalities this type of business can be easily dissolved. It can also be transferred to another person without any restrictions. This type of business is based on life or death and good health of the sole owner.
An example of this type of business is: Cathy’s house cleaning service/ Joe’s Tire Shop/Dave’s Custom Cuts
Characteristics of General Partnership:
Trust/ Money/ Responsibility/ Joint Contribution and Gain/ Mutual Ownership
This type has more than one owner. Contributions made by partners include money, property, services, ideas and knowledge. Partners also share in the gains of the business dividing the
Characteristics 3

profits according to their agreement. If the business has losses both partners are impacted. They both make business decisions and implied authority. Sometimes a managing partner is appointed for decision making.
Some examples of this type of business are: Morgan and Morgan Law Office/ Doctor Alberts/ Yvette Gaya DMD

Characteristics Limited Liability Company (LLC)
Subscribers/ Articles of Incorporation/ Ability to Raise Capital/ Liability & Asset Protection

It’s important than ever to put a legal shield between you and your creditors. As a

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