Sole Proprietorship and Partnership
They both have many similarities but one huge difference. You don’t need to file paperwork or follow legal procedures when it comes to sole proprietors and partnership. In both cases, the owner(s) is responsible for the profit and loss situations. It is the owner’s responsibility when they face legal charges and court orders. When the owners start these business structures, they commit to bearing all the challenges faced by their business.
Limited partnerships are expensive and very hard to run. The limited partnerships are run by limited partners and general partners. Limited partners are in the shadows but reap full rewards.
Corporations and LLCs
Corporation is totally different from partnerships and sole proprietors. It is a separate identity and the owner is completely different from the entity.
The owners of an LLC pay taxes on their shares of the business income and it is similar to partnerships when it comes to taxes. Corporations and LLCs are mostly used when a risk of being sued by customers or they have personal assets they want to protect from business creditors.
Nonprofit corporations, just like the name says, is a corporation that is made for the benefit of society. It is mostly run on donations and charities that are made by any one wants to. The government has exempted the nonprofit organizations of all the taxes, because they benefit the society in one way or the other.
Cooperatives are made by people who love to start their businesses. This can be art, crafts or anything they love to do. These are referred in the market as groups. The environment of these groups are often known to be informal, since these are not legally registered.
Yoel “Mo” Molina and I am a lifelong resident of Miami, Fl. I am a graduate of Miami Senior High, Class of 1992, Georgia Institute of Technology, B.S. 1997 and University of Maine School of Law, J.D. 2001. I have been practicing law in Miami Since 2001. I am a former training prosecutor in the Miami-Dade State Attorney’s Office. I have experience in jury trials, appeals, and administrative hearings. I have appeared before judges across the State. My experience ranges from civil litigation matters, collection matters, foreclosure, business and corporate, contracts, real estate, leases and employment matters..