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    ResearchPaper Entrepreneurship

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    Michelle Boniao

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    ResearchPaper Entrepreneurship

    Uploaded by

    Michelle Boniao
    9 views7 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    Download as docx, pdf, or txt
    9 views7 pages

    ResearchPaper Entrepreneurship

    Uploaded by

    Michelle Boniao

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    DIFFERENT LEGAL FORM OF BUSINESS OWNERSHIP

    RESEARCH PAPER

    MAVIC R. PAGOBO

    G9 AWESOMENESS
    MAVIC R. PAGOBO ENTREPRENEURSHIP

    G9 AWESOMENESS

    DIFFERENT LEGAL FORM OF BUSINESS OWNERSHIP


    A legal form of business ownership refers to the structure through which
    a business is organized and operated, determining how it's taxed, its liability,
    and other aspects. Here are some common forms:

    A Business Ownership refers to the legal rights and responsibilities an


    individual or entity holds over a business entity. Ownership can take various
    forms, each with its own implications for control, liability, and taxation , also a
    Business ownership refers to the legal and financial control over a business
    entity. It encompasses the rights and responsibilities of individuals or entities
    who own and operate a business or company. Business owners have the
    authority to make decisions, manage resources, assume risks, and enjoy the
    profits or bear the losses generated by the business. Ownership can take various
    forms, including sole proprietorship, partnership, corporation, or cooperative.

    its legal structure is one of the owner’s most important practical decisions. Each
    type of structure has its own benefits and considerations that are affected by
    the business' size, the number of owners and employees, the industry, and
    other variables. Each state passes its own business formation laws, and not all
    states allow for every type of business structure. This means that the
    requirements for forming a particular type of business vary from state to state.
    SOLE PROPREITORSHIP - A
    sole proprietorship is
    an unincorporated business with
    one owner. As soon as you embark
    on a solo side gig, freelance job, or
    a new business venture, you’re
    automatically a sole proprietor.
    However, if you’re starting a
    business with other people, you can’t be a sole proprietorship–you’ll
    automatically be a general partnership instead.
    A sole proprietorship, also known as a sole tradership, individual
    entrepreneurship or proprietorship, is a type of enterprise owned and run
    by only one person and in which there is no legal distinction between the
    owner and the business entity.[1] A sole trader does not necessarily
    work alone and may employ other people.[2]
    The sole trader receives all profits (subject to taxation specific to the
    [3]
    business) and has unlimited responsibility for all losses and debts. Every
    asset of the business is owned by the proprietor, and all debts of the
    business are that of the proprietor; the business is not a separate legal
    entity. The arrangement is a "sole" proprietorship in contrast with
    a partnership, which has at least two owners.
    1. Ownership: The business is entirely owned by one person who is
    responsible for all aspects of its operation.
    2. Liability: The owner is personally liable for all debts and obligations of the
    business. This means that personal assets could be at risk if the business
    incurs debts or faces legal action.
    3. Decision Making: The owner has complete control and decision-making
    authority over the business operations.
    4. Taxation: Income from the business is typically reported on the owner's
    personal tax return. This is done through a Schedule C attachment to the
    owner's Form 1040.
    5 EXAMPLE BUSINESS :
     MEDIA SOCIETY
     FREELANCE WRITING
     BAKERY SHOP
     CLOTHING STORE
     LANDSCAPING BUSINESS

    PARTNERSHIP - A partnership is a type of


    business structure where two or more
    individuals or entities join together to carry on a
    business for profit.
    When two or more people start a business
    together, they can form a partnership. There are
    several types of partnerships, including general
    partnerships, limited partnerships, and limited liability partnerships. In addition,
    joint ventures have some aspects of partnerships. The amount of money
    contributed, control exerted over the business, and legal liability vary depending
    on which type of partnership is formed.
    1. Multiple Owners: The business is owned by two or more individuals or
    entities, known as partners. Partners contribute capital, skills, or other
    resources to the partnership.
    2. Shared Profits and Losses: Partners share in the profits and losses of the
    business according to the terms of the partnership agreement. This
    agreement outlines each partner's share of ownership, responsibilities, and
    distribution of profits.
    Partnerships can take different forms, including general partnerships, limited
    partnerships, and limited liability partnerships , each with its own characteristics
    regarding liability, management, and taxation. They are commonly chosen by
    professionals, small businesses, and family-owned enterprises due to their
    flexibility and ease of formation.
    5 EXAMPLE BUSINESS:
     MEDICAL SERVICE
     ARCHITECTURAL FIRM
     RESTAURANTS
     ACCOUNTING FIRM
     LAW FIRM

    CORPORATION - Corporations are


    businesses that exist as a separate entity
    from their owners. Unlike a sole
    proprietorship or partnership, a corporation
    is legally liable for its actions and can live on
    after the death or departure of its owners.
    While there are several types of corporations,
    most large business entities are C corporations or C corps. This had a , Provides
    limited liability , Company exists in perpetuity , Unlimited shareholders, including
    foreigninvestors , Can offer more than one class of stock. And also , More
    complicated to set up , , Required to have shareholder and director meetings ,
    Corporate profits subject to double taxation.
    1. Multiple Owners: The business is owned by two or more individuals or
    entities, known as partners. Partners contribute capital, skills, or other
    resources to the partnership.
    2. Shared Profits and Losses: Partners share in the profits and losses of the
    business according to the terms of the partnership agreement. This
    agreement outlines each partner's share of ownership, responsibilities, and
    distribution of profits.
    3. Joint Decision-making: Partners typically have equal say in the
    management and operation of the business. Major decisions are usually
    made jointly, although the partnership agreement may designate specific
    responsibilities to individual partners.
    4. Unlimited Liability: In a general partnership, partners have unlimited
    personal liability for the debts and obligations of the business. This means
    that each partner's personal assets can be used to satisfy business debts
    and legal obligations.

    5 EXAMPLE BUSINESS :
     MICROSOFT CORP.
     NESTLE INC.
     ABS-CBN ENTERTAINMENT
     SHELL PLC
     APPLE INC.

    COOPERATIVE - A cooperative,
    often referred to as a co-op, is a type of
    business organization owned and
    operated by a group of individuals or
    entities for their mutual benefit. Here
    are some key features of a cooperative
    A cooperative is an association of
    people, organizations or businesses designed to benefit those using its
    services. A common example is a food co-op that sells food items to its
    consumer members at lower prices. Similarly, farmers can form a co-op
    to purchase supplies as a group and to share equipment. Members
    become part of a co-op by purchasing shares, and they either pay for
    the goods and services or volunteer their labor (i.e., stocking shelves at
    the food co-op) in exchange for them. This also comes with , Pooled
    resources , Operate to benefit members , No federal income tax.
    1. Ownership and Control: A cooperative is owned and
    democratically controlled by its members, who can be customers,
    employees, suppliers, or other stakeholders. Each member
    typically has one vote, regardless of the number of shares they
    hold or their level of investment.
    2. Shared Profits and Benefits: Profits generated by the cooperative
    are distributed among its members based on their participation,
    contribution, or patronage. This may be in the form of dividends,
    rebates, discounts, or other benefits.
    3. Voluntary Membership: Membership in a cooperative is
    voluntary, and individuals or entities typically join the cooperative
    to access goods, services, or benefits that may not be available or
    affordable otherwise.

    5 EXAMPLE BUSINESS:

     ASSOCIATED PRES.
     PRODUCER’S COOPERATIVE
     FARMING SOCIETY
     HOUSING/BANKING
     MARKETING SOCIETY

    REFERENCES
     https://www.forbes.com/advisor/business/types-business-ownership/
     https://www.investopedia.com/terms/s/soleproprietorship.asp
     https://www.investopedia.com/terms/p/partnership.asp
     https://corporatefinanceinstitute.com/resources/accounting/what-is-corporation-overview/\

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