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9. forms of business organization

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Perla Pelicano Corpez
Perla Pelicano Corpez

ORGANIZATION AND MANAGEMENT SHS SPECIALIZED SUBJECT IN ABM STRAND

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Forms of Business Organizations
All by yourself?
Sole Proprietorship Owned by one person Owner keeps all the profits Relatively unlimited control Easy to form
No separation of owner from business Owner responsible for all debts/liabilities Business and personal property can be seized
How can I start one?
How can I start one? Few legal requirements Can be run from a home, garage, or van
Do you have a friend…
Do you have a friend… and a good idea?
Partnerships Owned by two or more people Share profits equally (unless otherwise agreed upon)
Owners share all the risks equally Fully liable without limit (similar to a sole proprietorship) Partnerships
Forming a Partnership Partnership Agreement More difficult than a sole proprietorship
Corporations
Corporations Legal entity/artificial person Separate from its owners
Corporations Owners risk losing their investments Owners do not lose personal assets Harder to form
Corporations State Charter and Organizational Fees
Let’s Review
Sole Proprietorship Requirements for Organization Legal Status Liability Management Dissolution Ease of formation Duration None Owner is the business Unlimited Liability Owner decides Owner decides/death Just do it Death or disinterest
Requirements for Organization Legal Status Liability Management Dissolution Ease of formation Duration Agreement of Parties Owners not a separate entity Unlimited Liability Owner have equal say Owners decides/death/ withdrawal/Bankruptcy Moderately Hard Withdrawal/Bankruptcy Partnership
Requirements for Organization Legal Status Liability Management Dissolution Ease of formation Duration State Charter/Org. Fees Separate entity from Owners Limited liability of Shareholders Directors set policy and Appoint officers Does necessarily end Difficult Can be perpetual Corporations
Any Questions?
Any Questions? mr.dc.robertson@gmail.com slideshare.net/Giratorio youtube.com/user/MrTeachingTech D. Casey Robertson
Resources: http://www.paopen4businessbriefcase.state.pa.us/BStructure/SoleProp.asp http://www.portal.state.pa.us/portal/server.pt/community/reources/8826/corporation/533420 http://www.portal.state.pa.us/portal/server.pt/community/reources/8826/general_partnership/5 33421 http://www.dos.state.pa.us/portal/server.pt/community/business-related_boards/13772 http://www.allbusiness.com/business-planning/business-structures-corporations/686-1.html http://www.dos.state.pa.us/portal/server.pt/community/corporations/12457/forms/571880

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