Type of Business Structure
Entrepreneurs often overlook to choose the right business structure for the business. This is one of the most important aspects that you need to address before you launch the business.
You can begin with the ‘Sole Proprietorship’ wherein the owner can be a married couple or an individual.
This is the simplest of all the business structures but when it comes to liability, the owner will shoulder all debts.
‘General Partnership’ can consist of two or more individuals who consent in contributing skill, labor, and money into the business. This is different from ‘Limited Partnership’ since this can consist of general partners and one or more of limited partners. Other business structures related to partnership are the LLP (Limited Liability Partnership) and the LLLP (Limited Liability Limited Partnership).
If you prefer a more complicated business structure, you can opt for ‘Corporation’. This will usually come with financial and tax benefits although there is decrease personal control and higher licensing fees. Another option is ‘Non-profit Corporation’ wherein the company is not focused in generating profits. LLC or Limited Liability Corporation can be formed by one or more persons and/or entities. A special agreement is written by the founders that cover important aspects like profits, losses, interests, etc.
The trust is viewed as a legal relationship between two parties – trustee and beneficiary. Joint ventures are also possible as a business structure but this is usually formed for a certain time period to cover the business operation or transaction. You can also opt for Municipality which is a public corporation. On the other hand, an association is group organized individuals who share the same purpose, activity, and interest. When separate businesses occupy the same space, the business structure is called ‘tenants in common’.
These are the different business structures that you can choose from before startup.
- Franchise Opportunities
- Wholesale Business Opportunities
- Small Manufacturing Business
- Farming Business Ideas
- Unique Business Opportunities
- Shop Business Ideas
- Small Business Opportunities
- Startup Company Ideas
- Home Based Business Opportunity
- Rural Business Opportunities
- Tips for Buying and Selling
- Starting Rental Business
- Ideas for Small Business
- Free Business Ideas
- Internet Business Ideas
- Store Business Opportunities
- Entrepreneur Business Idea
- Retail Store Ideas
- Service Business Ideas
- Advice for Small Business
- Financing a Small Business
- Restaurant Business Opportunities
- Small Business Articles
- Business Marketing and Advertising
- Repair Business Opportunity
- Professional Career Opportunities
- Business Insurance Information
- Instructor Guides
- Writing an Audit Report
- How to Start a Money Transfer Business
- Why Does a Firm Use Long Term Debt
- What is the Purpose of Business Research
- How to Start a Popsicle Business
- How to Make Ant Farm Gel
- How to Start a Biscuit Business
- Starting a Skid Steer Business
- Starting a Sports Club Business
- Starting a Commercial Cleaning Business
- How to Start a Siding Business