The document discusses three main forms of business organization: sole proprietorship, partnership, and corporation. A sole proprietorship consists of an individual conducting business alone and has the simplest structure but the owner bears all financial risks. A partnership is an association of people who contribute capital and share profits and losses; it requires an agreement between partners but allows for more profit potential. A corporation is a separate legal entity regulated by charter and laws, with ownership divided into shares that are easier to transfer than partnership interests.

1. FORMS OF ORGANIZATIONS

2. WHY?
AIA

3. SINGLE PROPRIETORSHIP
PARTNERSHIP
ORGANIZATION
UAP

4. An individual conducting a business
SIMPLEST
BURDEN-PAY TAXES & RETAIN RECEIPTS
Separate Business & Personal finances
Death or Retirement
UAP
SINGLE PROP

5. An incorporated assoc. of persons
Legal Entity note separate from Partners
AGREEMENT BETWEEN PERSONS
EACH CONTRIBUTES
MORE PROFIT WITH MORE PEOPLE
POTENTIAL CONFLICT
UAP
PARTNERSHIPS

6. Capital
Responsibility
Duties
Liabilities
Operations & management
Distribution of Profits
Transferability
Admission of New Partners
Resolution Disputes
Dissolution
UAP
PARTNERSHIPS
In w r iting

7. SEPARATE LEGAL ENTITY that can conduct
business
MORE STABLE
MORE GOVERNMENT REGULATIONS
RULED BY CHARTERS & LAWS
CONTROLLED BY THE PROFESSIONS
COMPENSATION- Proportionate to Shares
Taxes
AIA
CORPORATION

8. L e g a l E x p e n s e
P r o f i t
S e l l i n g
L i a b i l i t y
L o a n s
D e c i s i o n s
AIA
SP P
C
F e w
A l l t o O wn e r
E a s y
U n l i m i t e d
D i ff i c u l t
N o t S h a r e d
C h e a p
S h a r e d
A n y t i m e
U n l i m i t e d
M a j o r i t y
Vo t e
C o s t l y
S t o c k s
E a s y
L i m i t e d
E a s y
M a j o r i t y
Vo t e