Sole Proprietorship- A simple business where a single person owns the business and is personally responsible for any debts incurred.
•LIABILITY-You are liable for payment of any debts incurred that cannot be paid for by the profits from the company. Also if you have personal debts that have gone to collections a creditor can be awarded business profits and or business assets to offset these debts. You are also liable for any injuries that may occur due to your company. •INCOME TAXES-The business is not taxed separately. All business income must be reported on the owners personal income tax return. •LONGEVITY/CONTINUITY-Sole proprietorships are dissolved when the owner dies. •CONTROL-The owner of a sole proprietorship is in complete control over every aspect of the business •PROFIT RETENTION-All income is the owner's who may do with it as he pleases. •LOCATION-Sole proprietors are able to conduct business from home, office, or internet. There isn't really any regulations that limit the location. •CONVENIENCE/BURDEN-Sole proprietorships are extremely simple and cheap to start. Depending on your city or county you may need to register for a business license or tax registration certificate. If have employees you may also need an employer identification number from the IRS, a zoning permit, or a seller's license from your state. General Partnership-A company that is jointly formed by two or more individuals
•LIABILITY-Each partner is liable for all debts of the company to include any contracts entered into by other partners. •INCOME TAXES-General partnerships do not pay income taxes directly to the IRS. Partners include any revenue and expenses on their personal income tax returns. •LONGEVITY/CONTINUITY-Since all funding comes from the owner's assets they have a limited longevity and a harder time expanding. •CONTROL-Normally each partner has an equal amount of control. •PROFIT RETENTION-Profits are split between partners.
•LOCATION-General Partnerships are able to conduct business from home, office, or internet. There isn't really any regulations that limit the location. Some counties or states may require a Doing Business As certificate •CONVENIENCE/BURDEN-All partners are held liable for any actions of other partners and can be held accountable. Funding is easier to come by do to the fact that one person isn't solely responsible. Limited Partnership-A company that is formed by two or more individuals where certain individuals play a more managerial role
•LIABILITY-There is no personal liability protection for the general partners but limited partners are protected. •INCOME TAXES-Profits are reported on the personal income taxes of the partners •LONGEVITY/CONTINUITY-Normlly funding comes from the limited partner and longevity depends on the terms of the limited partnership agreement. •CONTROL-Majority of the control is given to the general partners with the limited partners having little or no control. •PROFIT RETENTION-Nornally based on the amount of the money the limited partner invests and the level of control the general partners have, this would be detailed in the limited partnership agreement •LOCATION-Limited Partnership's are able to conduct business from home, office, or internet. There isn't really any regulations that limit the location. Depending on the county or state ordinances certain documents may be required to be filed with the relevant registration office's. •CONVENIENCE/BURDEN-This is a good model for the individual that is just wanting to invest but have the day to day activities handled by others. The major burden falls on the general partners, they are liable for anything that occurs. C-Corporation-Is an independent entity that is owned by share holders who elect a board of directors to oversee policies and make business decisions.
•LIABILITY-Share holders have a limited liability towards business debts. •INCOME TAXES-Profits are taxed separately under subchapter C of the IRS...
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