Explain The Three Major Forms Of Business Ownership

• LIABILITY – All liability rests in the sole proprietors shoulders. There is no hiding from liabilities of the company for the owner, nor is the business sheltered from liabilities of the proprietor. • INCOME TAXES – Since the owner and his/her business are one in the same, all income is then treated as personal income to the

Sole propietorship. is a business that is owned, and usually managed, by a single individual. earnings are treated just like the owners income; likewise, any debts the comany incurs are considered to be the owners personal debts.

A limited liability company protects each partner from personal liability for certain obligations of the company. An important difference from other partnerships is that each partner is liable for the debts and obligations of the partners. With limited liability Company, each state has its own laws governing partners for these vessels. Some states allow only certain professions, such as lawyers and accountants to form LLP. Some states only provide protection from liability for negligence claims, leaving personally responsible for other types of requests partner. For tax purposes, profits are divided equally between the partners and the partnership is not taxed separately.

LIABILITY – There is no separation between the individual and the business. As the owner and operator of a sole proprietorship, all of the profit and loss is the personal responsibility of the business owner creating unlimited liability.

Liability: The owner/operator of a Sole Proprietorship is subject to full and unlimited financial liability for the business. The owner and the company are legally the same entity. The company’s assets are legally the same as the owner’s personal assets.

LIABILITY – The general partner has unlimited liability, while the limited partner is typically liable for the investment that he contributes.

* Limited Liability - Unlike partnerships and sole proprietorships, corporate shareholders are not liable for any of the corporation's debts.

A mission statement should focus on goals, clarify issues and outline visions and objectives. It should communicate the essence of the company to the employees, shareholders and to the public (Hassan, M 1988). Similar to this, Doyle (1998) points out, that a mission statement describes the purpose of the business and its essential characters.

Liability – A corporation is a separate legal entity which means all of the liability is responsible to the corporation. Shareholders are very much so somewhat the same as limited partners they can only lose the amount of what they invested into the corporation.

This direct liability of the sole proprietor arising out of the conduct of the business together with the access of creditors to not just the business assets but also all other assets of the sole proprietor is what is meant by the “personal liability” of the sole proprietor. This is in contrast with other forms of business association we will examine in which the investor’s liability may be limited to the assets of the business (i.e. “limited liability”).

Limited liability. An LLC shields its members from incurring liability for the business debts and obligations of the other members. The limited liability protection afforded by an LLC is a significant advantage over a general a partnership structure, which does not shield its partners from the liabilities of fellow partners in the event of a partner’s default or exit from the partnership

a) Under the corporation, the owners have limited liability. Therefore, the owners of the corporation are not personally liable for the company’s debts. Sole proprietorship; on the other hand, the business owners are personally responsible for the business debt if the business doesn’t generate enough money to cover expenses.

So, what is a Subchapter S Corporation? A Subchapter S Corporation is a corporation where it has only about 100 shareholders where they are passes through net income, losses, and certain deductions. The S corporation also has a lot of paperwork and taxation. The S corporation has some advantages and disadvantages.

Limited liability is a socialist market economy terminology, generally referred to in the economic field. Limited liability and unlimited liability is relative, the two investors to assume its responsibility in the form of debt-funded enterprises. The so-called limited liability that is limited repayment liability means investors only invest their own capital to the business enterprise debt repayment bear responsibility, insolvency, excess liability form part of its natural exempt. Limited liability company is an important factor in the rise of big. The next partnership and individual proprietor-ships owner Normally it takes bear unlimited liability for the debt.

The most common forms of business are the sole proprietorship, partnership, corporation, S corporation, and Limited Liability Company (LLC). The LLC is a relatively new business structure allowed by state statute. The sole proprietorships are the simplest form of business. The owner is only one person and