THEME: “Types of business ”
INTERNATIONAL SCHOOL OF FINANCE TECHNOLOGY AND SCIENCE
ISFT – 2022
Student: Isakova Sevinch
Group: Flk_01
Teacher: Zakirova Gulnora
SELF STUDY
What are the Types of Businesses? - There are different types of businesses to choose from when forming a company, each with its own legal structure and rules. Typically, there are four main types of businesses: Sole Proprietorships, Partnerships, Limited Liability Companies (LLC), and Corporations. Before creating a business, entrepreneurs should carefully consider which type of business structure is best suited to their enterprise.
- This article will provide a quick overview of these four basic types of businesses to help entrepreneurs make one of their most important decisions.
- Corporate Finance Institute offers financial analyst training that you can apply to manage the financials of your business. Check out our Financial Modeling & Valuation Analyst (FMVA)® certification program!
- A sole proprietorship is an unincorporated company that is owned by one individual only. While it is the most simple of the types of businesses, it also offers the least amount of financial and legal protection for the owner. Unlike partnerships or corporations, sole proprietorships do not create a separate legal identity for the business. Essentially, the owner of the business shares the same identity as the company. Therefore, the owner is fully liable for any and all liabilities incurred by the company.
- An entrepreneur may choose this option if they want to retain full control of the company. Additionally, it is a relatively easy and inexpensive process to establish a sole proprietorship. There are also tax benefits, as income is considered the owner’s personal income and therefore only taxed once. Finally, there are relatively few regulation requirements for sole proprietorships.
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