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    Forms of Business Org

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    Nald Tropel
    The document discusses three main forms of business organization: sole proprietorships, partnerships, and corporations. It provides definitions and compares the key attributes of each form, including governance, ownership structure, liability, taxation, management, transfer of ownership interests, withdrawal of owners, and special purpose entities. The three organizational forms were developed to meet business owners' objectives regarding liability, profit distribution, taxation, and capital structure.

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    © All Rights Reserved
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    Forms of Business Org

    Uploaded by

    Nald Tropel
    44 views14 pages
    The document discusses three main forms of business organization: sole proprietorships, partnerships, and corporations. It provides definitions and compares the key attributes of each form, including governance, ownership structure, liability, taxation, management, transfer of ownership interests, withdrawal of owners, and special purpose entities. The three organizational forms were developed to meet business owners' objectives regarding liability, profit distribution, taxation, and capital structure.

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    The document discusses three main forms of business organization: sole proprietorships, partnerships, and corporations. It provides definitions and compares the key attributes of each form, including governance, ownership structure, liability, taxation, management, transfer of ownership interests, withdrawal of owners, and special purpose entities. The three organizational forms were developed to meet business owners' objectives regarding liability, profit distribution, taxation, and capital structure.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    44 views14 pages

    Forms of Business Org

    Uploaded by

    Nald Tropel
    The document discusses three main forms of business organization: sole proprietorships, partnerships, and corporations. It provides definitions and compares the key attributes of each form, including governance, ownership structure, liability, taxation, management, transfer of ownership interests, withdrawal of owners, and special purpose entities. The three organizational forms were developed to meet business owners' objectives regarding liability, profit distribution, taxation, and capital structure.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 14

    FORMS OF

    BUSINESS
    ORGANIZATION
    FORMS OF BUSINESS ORGANIZATION

    Introduction and Understanding of


    Three Principal Forms of Business
    Organization
    Essential Attributes and
    Characteristics
    Analyzing Business Needs and
    Selecting Appropriate Business
    Form
    FORMS OF BUSINESS ORGANIZATION

    Organizational Forms determined by


     Owner’s Objectives: Liability, Profit
    Distribution, Taxation and Capital Structure
     Dealings with Outside World: Other Owners,
    Heirs, Employees, Customers and Future
    Owners of Business
     Legislative Goals: Special-Purpose Entities to
    encourage investments, in, for example,
    Small Businesses or Affordable Housing
    FORMS OF BUSINESS ORGANIZATION

    Three Organizational Forms


    developed by Business Owners
     Sole Proprietorship
     General Partnership
     Corporation
    FORMS OF BUSINESS ORGANIZATION

    DEFINITIONS
    Sole General
    Corporation
    Proprietorship Partnership
    Legislatively
    Two or More Created and
    Any Business
    Persons Regulated
    Owned and
    Operating a Governance,
    Operated by an
    Business for a Ownership and
    Individual
    Profit Financial
    Structure
    FORMS OF BUSINESS ORGANIZATION

    FORMATION
    Sole General
    Corporation
    Proprietorship Partnership
    No Formalities or Filing of Articles
    Written or Oral
    Legal of Incorporation
    Agreement or
    Documentation; with Secretary of
    May be Implied
    May be Implied State and
    from Conduct or
    from Conduct or Payment of
    Actions
    Actions Fees
    FORMS OF BUSINESS ORGANIZATION

    GOVERNING DOCUMENTS
    Sole General
    Corporation
    Proprietorship Partnership

    None Required; Articles of


    Most have Incorporation
    Agreement create
    None Required
    specifying Rights, Corporation;
    Duties and Bylaws prescribe
    Obligations its Operation
    FORMS OF BUSINESS ORGANIZATION
    NATURE OF OWNERSHIP
    Sole General
    Corporation
    Proprietorship Partnership

    For Contribution,
    Residual
    Claim on
    Partner receives
    Wholly Owned Corporate Equity
    Proportionate Share
    by Single and Right to Vote
    of Profits/Losses
    Individual for Directors and
    and Partnership
    Essential
    Property
    Governance
    FORMS OF BUSINESS ORGANIZATION

    LIABILITY
    Sole General
    Corporation
    Proprietorship Partnership
    Sole Proprietor Partners are Jointly Shareholder’s
    Personally and Severally Liable Liability limited to
    Liable for All for all Partnership Extent of Capital
    Debts and Obligations, in Contribution
    Obligations Contract and in Tort [Limited Liability]
    FORMS OF BUSINESS ORGANIZATION

    TAXATION
    Sole General
    Corporation
    Proprietorship Partnership

    Not a Taxable
    Partnership not a
    Taxable Entity;
    Corporation
    taxed as Separate
    Entity; Income Allocations of
    Entity and
    (Loss) passes Income and Loss
    Dividends/Capital
    through to Sole allowed within
    Gains also Taxed
    Proprietor Partnership before
    [Double Taxation]
    Pass-Through
    FORMS OF BUSINESS ORGANIZATION

    MANAGEMENT
    Sole General
    Corporation
    Proprietorship Partnership
    Managed by
    All Partners have Board of Directors
    Sole Proprietor
    Equal Rights in elected by
    has Complete
    Partnership’s Shareholders; Board
    Management
    Management and may Delegate
    Control
    Conduct Authority to
    Appointed Officers
    FORMS OF BUSINESS ORGANIZATION

    TRANSFER OWNERSHIP INTERESTS


    Sole General
    Corporation
    Proprietorship Partnership
    Freely
    Sole
    Transferable
    Proprietorship not Limited Right of
    through Formal
    Transferable; Transfer subject
    (NYSE) and
    Property and to Consent by all
    Informal (Private
    Products are Partners
    Equity) Capital
    Transferable
    Markets
    FORMS OF BUSINESS ORGANIZATION

    WITHDRAWAL OF OWNER
    Sole General
    Corporation
    Proprietorship Partnership

    Partner Death or
    Terminates
    Withdrawal may Corporation has
    Sole
    Terminate Unlimited Life
    Proprietorship
    Partnership
    FORMS OF BUSINESS ORGANIZATION

    SPECIAL PURPOSE ENTITIES


    Limited Liability
    Limited Subchapter “S”
    Corporation
    Partnership Corporation
    (LLC)
    General Partner
    (Manager with Hybrid with Identical to “C”
    Unlimited Corporate Liability Corporation except
    Liability) and Protections and Right to Elect
    Limited Partner Partnership Tax Income/Losses
    (Investors with Treatment Pass-Through
    Limited Liability)

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