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Know the Business Structures
Seven of the types of business structures are main. Different models are necessitated by the fact that businesses will not thrive by use of the same model. Different businesses have diverse rules. The different models of businesses will be clear if you read to the end.
The first one is sole proprietorship. The ownership of this type is a single person. Although the owner bears all risks and debts, it is very easy to start. A sole a sole proprietor cannot sell shares.
General partnerships is the next category. There are several partners and this is the major distinction between this category and a sole proprietor. All partners share the profits and losses. The number of partners begins at two but having many of them delays decision making. One of the pitfalls to avoid in these is starting a business without a formal agreement.
The other type is a Limited Liability Partnership but check it out. To set up this type of partnership, there is some paperwork and legal fees that are required but check this service. Other partners are free to join later and the liability is limited. All the partners will share in the debts and profits. It is the same case when it come to legal liabilities.
The other category is the corporations. those who own shares in the company are the ones who own a corporation. The shareholders will decide the running of the company. The profits are shared according to the number of shares each individual has. Raising capital is easy since it only requires selling of shares. Also, banks will willingly give loans to corporations. Another good thing with corporations is that there is no personal liability. It is extremely hard for decisions to be made in corporations. Also, there are more taxes and legal fees meted on corporations.
Again, there are the S Corporations. These are not the same as we know standard corporations. The shareholders will bear all the losses and tax deductions. There is also a cap of the number of shareholders. However, there is a very high degree of protection that the shareholders will enjoy.
There are also the Limited Liability Companies. They have a recent structure. Aspects of partnerships and corporations are merged in them. The owners pay income taxes on their profits.
However, the LLC has protection for the owners and its important to know what are the benefits of an LLC . If you run high risk businesses, this is the right type for you.
The other one is a Co-Op. The ones who run this one are members of a cooperative society. They mainly provide services to the members but see website.

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