This is the latest accepted business plan order, reviewed on 25 February 2019.
This article needs additional citations for verification. Having a business name does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for debts incurred by the business. If the business acquires debts, the creditors can go after the owner’s personal possessions. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business. A company, on the other hand, is a separate legal entity and provides for limited liability, as well as corporate tax rates.
Sole proprietorship: A sole proprietorship, also known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees. Partnership: A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business. Corporation: The owners of a corporation have limited liability and the business has a separate legal personality from its owners. Cooperative: Often referred to as a «co-op», a cooperative is a limited-liability business that can organize as for-profit or not-for-profit. A cooperative differs from a corporation in that it has members, not shareholders, and they share decision-making authority.
Franchises: A franchise is a system in which entrepreneurs purchase the rights to open and run a business from a larger corporation. Franchising in the United States is widespread and is a major economic powerhouse. One out of twelve retail businesses in the United States are franchised and 8 million people are employed in a franchised business. A company limited by guarantee: Commonly used where companies are formed for noncommercial purposes, such as clubs or charities. A company limited by shares: The most common form of the company used for business ventures.
Specifically, a limited company is a «company in which the liability of each shareholder is limited to the amount individually invested» with corporations being «the most common example of a limited company. A company limited by guarantee with a share capital: A hybrid entity, usually used where the company is formed for noncommercial purposes, but the activities of the company are partly funded by investors who expect a return. This type of company may no longer be formed in the UK, although provisions still exist in law for them to exist. A limited liability company: «A company—statutorily authorized in certain states—that is characterized by limited liability, management by members or managers, and limitations on ownership transfer», i.
In this case doctrine of a veil of incorporation does not apply. Companies formed by letters patent: Most corporations by letters patent are corporations sole and not companies as the term is commonly understood today. Charter corporations: Before the passing of modern companies legislation, these were the only types of companies. Statutory companies: Relatively rare today, certain companies have been formed by a private statute passed in the relevant jurisdiction. In legal parlance, the owners of a company are normally referred to as the «members». In a company limited by guarantee, this business plan order be the guarantors.
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There are, however, many, many sub-categories of types of company that can be formed in various jurisdictions in the world. Companies are also sometimes distinguished into public companies and private companies for legal and regulatory purposes. The definition of a parent company differs by jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction. Entertainment companies and mass media agencies generate profits primarily from the sale of intellectual property. Industrial manufacturers produce products, either from raw materials or from component parts, then export the finished products at a profit. Real estate businesses sell, invest, construct and develop properties, including land, residential homes, and other buildings.
Most stores and catalog companies are distributors or retailers. Transportation businesses such as railways, airlines, shipping companies that deliver goods and individuals to their destinations for a fee. Utilities produce public services such as water, electricity, waste management or sewage treatment. Service businesses offer intangible goods or services and typically charge for labor or other services provided to government, to consumers, or to other businesses. Accounting is the measurement, processing and communication of financial information about economic entities such as businesses and corporations.
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