Incorporate Business - Business structure Part 1

<< Previous [1] 2 Next >>

Business structure

The following tables show a comparison of business structure types. Different business strucures have different rules and benefits. Choosing the right business structure for your business is one of the first step to consider when starting a business. For a successful business, you need the right business organizational structure. The following table shows the comparison of the different types of business organizational structure: sole proprietorship business structure, general and limited partnership business structure, corporation business structure (S corporation and C corporation) and LLC business structure.

Sole proprietorship	General partnership	Limited partnership
Who owns the business?
Sole proprietor	General partners	General and limited partners
Personal liability
Sole proprietor personally liable	General partners personally liable	Only general partners personally liable
Business restrictions
May engage in any lawful business	May engage in any lawful business	May engage in any lawful business
Number of owners
Only one sole proprietor	Minimum two general partners	Minimum one general partner and one limited partner
Management decisions
Sole proprietor	General partners	General partners
Who may legally obligate business
Sole proprietor	Any general partners	any general partner
Effect on business if an owner dies or leaves the business
Dissolve automatically	Dissolves automatically unless otherwise stated in the partnership agreement	Dissolves automatically unless otherwise stated in the partnership agreement
Limits on transfer of ownership interest
Free transferability	Consent of all general partners usually required under partnership agreement	Consent of all general partners usually required under partnership agreement

<< Previous [1] 2 Next >>

Business - home Business structure LLC Business Filings Corporation C Corporation Rules S corporation Incorporation Surefire Success System Site Map

Information on Business and how to incorporate information website is for information only. You are advised to consult a tax expert for your particular situation.

Business structure

Sole proprietorship

General partnership

Limited partnership

Make money today with: