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1)Sole Proprietorship:This is the most common type of business entity. Sole proprietorship means that theres a sole owner who funds and operates the business. It is the simplest form of business entities – relatively formality free, no rules about records you are required to keep, no requirement of having your accounts audited and no requirement of filing financial information to the registrar of companies. In short, there is no legal distinction between you and your business.
2)Partnerships:Partnership is a type of business entity, where you partner with other individuals to own and run the business. On a higher level, they can be viewed as collection of sole proprietors. By partnering with other individuals, you get access to a bigger pool of capital, skills and other resources to fund and run your business. All partners contribute capital equally, share profits and losses equally and have an equal say in business decisions.
3)Limited Liability Company:This type of business entity is most common and preferred type while starting a company. A limited liability company is a separate legal entity from its founders, shareholders and mangers. The liability of the shareholders is limited to the paid-unpaid capital that is issued as part of the company. Thus, in case of bankruptcy, personal assets of the founders/mangers is not affected. A limited liability company needs to keep record of accounts, audit their records and file an annual report on return with the registrar of companies.
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Topic starter
Posted : 15/04/2010 8:13 am
Re: Types of Business Entities??
A business entity is the vehicle a person or group of people use to carry on a trade or activity.
There are four main types:
* Sole trader
* Partnership
* Limited liability partnership
* Limited liability company
Posted : 19/04/2010 2:29 am
Re: Types of Business Entities??
1) Sole Proprietorship:A sole proprietorship is the form of business entity with the least amount of legal formalities. In a proprietorship, the owner assumes sole responsibility for the operations and finances of the business, including profit and loss.
2)General Partnership:General Partnerships require an agreement between two or more individuals or entities to jointly own and operate a business.
3)Limited Partnership:A limited partnership is a form of business organization that offers some of the partner's limited liability. It consists of a general partner who organizes and manages the partnership and its operations, and limited partners who contribute capital but have limited liability and assume no active role in day-to-day business affairs.
4)Limited Liability Partnership:LLP's are organized to protect individual partners from personal liability for the negligent acts of other partners or employees not under their direct control.
5)Limited Liability Company:A Limited Liability Company (LLC) is a combination of the corporate and partnership forms of business. In an LLC, parties control shares of the company and like corporations, their liability for the operations of the company is determined by their level of investment.
Have a nice day
Posted : 24/04/2010 9:40 am
Re: Types of Business Entities??
Hello
You have shared a very informational article. Thank you for this wonderful post. keep sharing your nice views like this.
Thank you for sharing
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Daniel
Posted : 26/04/2010 5:31 am
Re: Types of Business Entities??
Hi
Limited Liability Partnership: LLP's are organized to protect individual partners from personal liability for the negligent acts of other partners or employees not under their direct control.
Limited Liability Company: A Limited Liability Company (LLC) is a combination of the corporate and partnership forms of business. In an LLC, parties control shares of the company and like corporations, their liability for the operations of the company is determined by their level of investment.
Have a nice day
Posted : 26/04/2010 11:38 am
Re: Types of Business Entities??
The following is an outline of the tax and other aspects of the four major business and tax entities. This is not presumed to be the whole story but just a sketch of the major characteristics and a basis for further discussion.
Please note that a LLC - Limited Liability Company can be taxed as either a "S" Corporation or a partnership, or sole proprietorship depending on how the agreement is drafted. The LLP - Limited Liability Partnership is taxed as a Partnership. There are no separate tax forms for the LLC or LLP.
Posted : 27/04/2010 7:24 am
Re: Types of Business Entities??
See my blog about choosing the right form of business or you.
http://www.carterservicesplus.com/blog030610.html
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Posted : 30/04/2010 8:57 pm
Re: Types of Business Entities??
Hello
The tips you have shared are really very nice and genuine. Thank you for sharing your useful views. Keep sharing your opinions like this.
Thank you for sharing
keep sharing
Smith
Posted : 01/05/2010 4:10 am
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