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types of business organisations

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types of business organisations
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  • Горка: 1
  • Sole Proprietorship
  • As the owner of a sole proprietorship, I work alone. I do not have to share my Profits or have to file a lot of paperwork. The government sees me and the company as one.
  • It is very simple to start and operate, but I have to come up with all the funding myself and as the law sees me and my company as one entity I am liable for all damages and losses.
  • A lot of photographers, Writers and Housekeepers have a sole proprietorship
  • Горка: 2
  • Partnerships
  • We are in a partnership. That means that we share the responsibilities, liabilities and profits of our company.
  • A lot of law firms, accounting groups and real estate investors are Partnerships.
  • This means that we have less of a financial burden than sole proprietorships, while the company is still not it's own legal identity, which means less paperwork and a simpler organization.
  • But, as it is not a legal entity we are still individually taxed. We are liable for any losses or damages and disagreements are fatal to a Partnership.
  • Горка: 3
  • Corporation
  • We are part of a Corporation. A corporation is a separate legal entity from it's owners, as such it pays taxes and can enter legal contracts.
  • Most big companies you know such as Amazon, Apple and Microsoft are Corporations.
  • Горка: 0
  • As a legal Identity of it's own, corporation have their own Tax report and can enter into legal Contracts. It is a lot easier for a Corporation to raise funds and expand.
  • Although this seems perfect, there are some drawbacks: They are difficult to start and require a lot of funds to operate, the paperwork that has to be filed is extensive and there is a possibility of double Taxation.
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