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Five Forms of Business Ownership (CORPORATION (CORPORATION (Corporation is…
Five Forms of Business Ownership
CORPORATION
Corporation is a legal entity with its own rights, privileges and liabilities separate from the members who created it.
(www.yourdictionary.com/corporation)
SOLE PROPRIETORSHIP
A sole proprietorship is an unincorporated business with only one owner who pays personal income tax on profits earned.
Sole proprietorships are easy to establish and dismantle, due to a lack of government involvement, making them popular with small business owners and contractors.
(www.investopedia.com/terms/s/soleproprietorship.asp)
PARTNERSHIP
Partnership is an unincorporated business entity formed by two or more people.
The owners of a partnership are called partners because they join efforts and resources to start the business. ... A partnership is established as soon as two or more people agree to go into business together. This is considered a general partnership because all the partners run the operations of the business share the risk and liability.
(myaccountingcourse.com/accounting-dictionary/partnership)
FRANCHISE
Franchise is to grant authorization to someone to perform a service or operate a business.
When a company grants permission for someone to open a branch of their company, this is an example of to franchise. ... A franchise allows an entrepreneur the opportunity to run his or her own business without the time and expense of having to start a business from the ground up
(www.yourdictionary.com/Franchise)
LLC
LLC is a limited liability company which is a legal designation for a business organization that has features of a sole proprietorship, a partnership and a corporation
(www.yourdictionary.com/llc)
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