There are a range of legal structures associated with different forms of business: 1 sole trader businesses are the easiest to set up because for example most organisations will have a marketing department responsible for market research and marketing planning a customer services department will look after customer. Read this full essay on business forms: proprietorships, partnerships, and corporations starting a new business is the dream of entrepreneurs all across the. Organizational structure defines who is responsible for a task, how and when the task is performed as it relates to the company's business goals different businesses have different types of structures each structure has advantages and disadvantages differentiation is the grouping of people and tasks into functions and. Forms of business organizations accounting 561 may 14, 2012 there are four forms of business organization and now that the government has released funds. It is important that the business owner seriously considers the different forms of business organization—types such as sole proprietorship, partnership, and corporation which organizational form is most appropriate can be influenced by tax issues, legal issues, financial concerns, and personal concerns for the purpose of. In this essay, five common business structures were examined in relation to the liability exposure a business owner may expect also analyzed were steps business owners can take to limit the liability exposure for each type of business structure finally, an organizational structure was examined for a proposed business.
This essay has been submitted by a law student this is not an example of the work written by our professional essay writers the type of business organizations business is the most important issue in our daily life, especially with the trend of globalization and the increasing competitions business includes a variety of. There are many types of business in the business world form the small one to the large one choosing the form of business organization is an important decision because it can be critical to the success or the failure of the business organization each form of business organization has its advantages and. It is important to understand the different types of business organizations types such as a sole proprietorship, partnership, and corporation a business's organizational structure influences issues, legal issues, financial concerns, and personal concerns a sole proprietorship is a business with. One of the first decisions that you will have to make as a business owner is how the business should be structured all businesses must adopt some legal configuration that defines the rights and liabilities of participants in the business's ownership, control, personal liability, life span, and financial structure this decision will.
Sole proprietors are required to report all the company's earnings or lack or earnings on their private tax return the enterprise itself is not taxed independently the owner pays self employment tax longevity or continuity of the organization: sole proprietors have a track recorded of limited longevity. When you start your business, you will have to decide on which type of business entity you will be: sole proprietorship, partnership, limited liability company (llc), corporation, or nonprofit the type of business structure you choose will depend on several factors, including the nature of the workforce within your organization,. In the last quarter of the 20th century this new form of non-corporate organization became available in the united states and other countries, and was known as the limited liability company or llc since the gmbh and llc forms of organization are technically not corporations (even though they have many of the same.
Large firms in the united states, such as ford and microsoft, are almost all organized as corporations we examine the three different legal forms of business organization—sole proprietorship, partnership, and corporation—to see why this is so each form has distinct advantages and disadvantages for the life of the. At first glance, establishing erin p photography as a sole proprietorship business form seems to be the correct course of action to follow forming the business as a sole proprietorship does have some advantages over other forms of business organization one such advantage is that it is the simplest and. The most common forms of business enterprises in use in the united states are the sole proprietorship, general partnership, limited liability company (llc) although some commentators trace the origin of the llc to a 19th century form of business organization called the partnership association, or limited.
This article will focus on different forms of business there are a number of ways to structure a business — these include sole proprietorships, different types of partnerships, limited liability companies, and corporations each form of business organization has advantages and disadvantages and these are largely influenced. There are four main types of business formations, and each one has its own advantages and disadvantages some are easy and inexpensive to form if your state statues allow it, you can file articles of organization or a certificate of formation to form a limited liability company llcs provide their owners, who are known as.