Types Of Business Ownership Chart
Sole proprietorship partnership or corporation. Owner reports profit or loss on his or her personal tax return.
Well compare three ownership options sole proprietorship partnership corporation on these eight dimensions.
Types of business ownership chart. Ownership of a business comes in many different formats and an organizational chart can look at that ownership along economic- and shares-based lines or along geographical lines. NCGS 59 Article 1 Article 2 Article 3 Article 3a Article 4 NA. The most common forms of business are the sole proprietorship partnership corporation and S corporation.
Sole Proprietorship and its Advantages In a sole proprietorship as the owner you have complete control over your business. Management of the Business. 7 rows Partnerships are the simplest structure for two or more people to own a business together.
Key Documents for Formation. Sole proprietor contributes whatever capital needed. It is important to select the most appropriate form of ownership that best suits your needs and the needs of your business.
7 rows Sole proprietor manages the business. Personal Liability of Owners. You make all important decisions and are generally responsible for all day-to-day activities.
In the start-up phase of a new closely-held business when the company is probably losing money pass-through tax structures general partnership limited partnership limited liablity partnership S-corporation or limited liability company are preferable. Business ownership can take one of three legal forms. This section will examine the first two forms of business ownershipsole proprietor-.
As with a Sole Proprietorship there is no limited liability protection so if the company is sued or acquires debt the partners personal. A Business Structure Chart. Owner personally liable for business debts.
The partners in a partnership can be individuals corporations or trusts and the ownership is shared among the partners. Profits or losses are allocated according to their contractual terms and are reported on the individual tax returns of each owner. To chart that ownership you need to capture ownership data from documents focusing on direct parent companies and subsidiaries only.
Entity Type Liability Taxation Formation Corporate Maintenance. Legal and tax considerations enter into selecting a business structure. Flow through sole proprietor.
No formal corporate maintenance is required. Below is a chart to help illustrate the key distinctions among the various business entities. Type NC Governing Statute Document Filed to Create Ownership Management Owner Liability Federal Income Taxation Annual Report Required to SOS.
Simple and inexpensive to create and operate. A Limited Liability Company LLC is a business structure allowed by state statute. The general definition of.
Choosing among the types of business ownership involves a balancing of competing concerns.
