buisness ownership

what is buisness ownership

there are 4 types of buisness owner ships 

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1]Sole proprietorship

A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

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2]Partnership

 The IRS automatically considers any business started by more than one person to be a partnership. Each person in the partnership is equally liable for the activities of the business. A partnership is the most flexible business structure for a business that involves more than one person. Partnerships aren’t taxable entities, but partners do have to file an informational IRS Form 1065 with their personal tax returns.

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3]Limited Liability Company

This business form falls somewhere between a corporation and a partnership or sole proprietorship in terms of protection by the law. In most states, LLC owners get legal protection from lawsuits like a corporation. Reporting requirements for LLCs aren’t as strict as they are for a corporation. LLCs don’t have to pay corporate taxes or file all the forms required of a corporation. The IRS treats LLCs as partnerships or sole proprietorships unless they specifically ask to be taxed as corporationsImage result for Limited Liability Company

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S or C corporation

Corporations are separate legal entities, and their owners are protected from claims filed against the corporation’s activities. However, the obligations that come with incorporating are tremendous, and a corporation needs significant resources to pay for the required legal and accounting services. There are two types of corporate structures:

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the defenitins

S corporation:This corporation has fewer than 100 shareholders and functions like a partnerships but gives owners additional legal protection.

C corporation:  This corporation is a separate legal entity that files its own tax returns. It is treated in the courts more or less like a person. Owners must split their ownership by using shares of stock.

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the defenitins

S corporation:This corporation has fewer than 100 shareholders and functions like a partnerships but gives owners additional legal protection.

C corporation:  This corporation is a separate legal entity that files its own tax returns. It is treated in the courts more or less like a person. Owners must split their ownership by using shares of stock.

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