Business Ownership Structures

​Learn about all there is to Business Ownership Structures.
Here is a short list of all the ways in which you can organize your business, before you decide to structure your business:
●       Sole proprietorship                                           
●       Partnership
●       Limited partnership
●       Limited Liability Company (LLC)
●       Corporation (for profit)
●       Nonprofit corporation (not for profit), and
●       Cooperative.
 
Sole Proprietorships
The business you do for yourself is called a sole proprietorship. Paperwork is not required if you want to open it, as it is a one-person business.
In sole proprietorship, the business and the owner are same. This means that the owner is always held responsible for profits and losses. He is personally responsible for all the debts or court matters.
 
Partnerships
A partnership is similar to sole proprietors, when it comes to no paperwork, but it is made up of two or more than two owners. The owners get equal shares, from which they pay debts and claims. They also use their personal assets in order to make payments. Sole proprietors and partnerships, both come handy when the business is small and does not require huge amounts of loan.
 
Limited Partnerships
The general partner is personally liable for business debts and controls the limited partnership's day-to-day operations. Limited partners are not personally liable for business debts or claims and, in return, they have minimal control over daily business decisions or operations.
 
Corporations and LLCs
A corporation is an independent legal entity, it is separate from the people who own, control and manage it. Owners only pay taxes on the money they spend on salaries and other expenses.
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.
 
Nonprofit Organizations
NPOs are mostly run on donations and charity as they are made for the society’s benefit. The government does not charge taxes on the NPOs.
 
Cooperatives
Cooperatives are organizations owned and operated democratically by its members. Everybody has an equal right in it. They have informal environments.