The Many Types of Business Ownership

In the United States or Canada there are many forms of business ownership. Many business owners, in the US, who decide to start-up their own business must carefully choose a form of business ownership for their corporation, this will determine the legal arrangements of the business. The reason it is important for a business manager to choose a legal development for his company is because this decision will have an effect on matters such as taxes and regulatory requirements. If an executive manager doesn’t make a precise decision than his business has less chances of achievements. Al though there are many types of businesses in the US they all have their advantages and disadvantages this is why, again ,it is very important for a business owner to carefully choose the business he wants to manage and operate according to his needs. The first form of business ownership in the US is sole proprietorship. A sole proprietorship business is owned by one individual. The owner may operate the business on his own or hire others. There are some disadvantages of a sole proprietorship. The disadvantage of a sole proprietorship is that the financial resources are limited by the resources of the owner. Profits are treated as personal income so you have to pay personal income taxes not business income taxes which are generally low. Unlimited assets even if they are not related to the business. Business life is limited to the owner's lifespan and the entire business must be sold to transform ownership. Another type of business in the US is partnership it’s the same as sole proprietorship but is owned by more than one owner. There are two forms of partnership general partnership and limited partnership. A general partnership is where the partners share unlimited liabilities for all debts and shared gains and losses. The gains and losses are split according to a partner agreement which may be a formal document or informal. The mini partnership on the other hand has one or more person