There are four major categories of business: sole proprietorship, limited liability company, partnership, and corporation. Here, I’ll give you an overview of the four main types, and how each is employed in the realm of business law. In this article, I’m going to be focusing on the four main types as used by attorneys and business owners, including the advantages and disadvantages of them. After reading this article, I hope that you will have a better understanding of which type of business you should have.
Sole proprietorship. A sole proprietor is the type of business that is run solely by the person owning it. This is also the most popular type of company that a person can start up. It’s also one of the easiest types to set up. All that is needed is for the owner to sign a document promising to carry out the company’s tasks. Once the business is up and running, it is very difficult to get involved with the business once it’s up and running, so it is one of the least desirable types of businesses.
Limited Liability Company. This type of business is run by one person. The person holds the business name, but he or she does not own it, so they can be sued personally by other people who are hurt by the business. This also gives the owner of the business a lot of protection if he or she ever has to go to court because the person is protected under state and federal laws. Another advantage of this type of company is that there is no need for a board of directors, which makes it easier for investors to get involved. However, a downside to this type of company is that it is much harder to become successful with it than a sole proprietor is.
Corporation. A corporation is a group of people that own a company. Although it has its share of advantages, it also has a number of disadvantages. The biggest one is that it is very difficult to get into one, especially if you want to get into one based on the capital you are willing to invest. If you choose to invest in a corporation instead of a sole proprietor, then you will probably be able to get into it much easier.
Limited Liability Company. This is the last type of business that we are going to discuss today. This type of business is run by one individual. It has a few advantages over the other two, but has its share of disadvantages as well. The biggest one is that you are more likely to be able to get into one if you have less money invested in it. This is the reason why this type of company is typically run by people who do not have a lot of money. Also, there is not much room to grow, so it requires a lot of capital for growth before it becomes successful.
You can choose which type of business you want to have, but it’s important that you understand the legal structure. In that way, you’ll be able to create a structure that suits your needs and the business that you want to run. With that, you will be able to become the entrepreneur you’ve always dreamed of.