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Ownership Structures in Industrialized Countries - Essay Example

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The paper “Ownership Structures in Industrialized Countries” focuses on a decision about the ownership, which is the prime factor to be considered by the entrepreneurs. The nature of the Ownership must be stated clearly in order to fulfill all the legal formalities to start a business…
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Ownership Structures in Industrialized Countries
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Download file to see previous pages In such sole proprietorship business, the owner submits the business income and loses on his or her personal tax return and is personally liable for any business related obligations such as debts or court judgment. (Business Ownership Structures)
Partnership business is a business owned by two or more persons to become a corporation or limited liability company (LLC). As in the case of sole proprietorship, no need to file any paperwork to form a partnership. Both in sole proprietorship and partnership business personal liability is not a big factor. For small average business owners, sole proprietorship and partnership businesses are advisable because of the less complication in such businesses. “As in a sole proprietorship, the partnership's owners pay taxes on their shares of the business income on their personal tax returns and they are each personally liable for the entire amount of any business debts and claims” (Business Ownership Structures)
Limited partnership ownership structure is complicated in nature and it is not easy for an average entrepreneur to set up such a complicated business structure. In such partnerships one person or a group of persons (company) which is referred to as a general partner, who will collect investments from others (limited partners) to accumulate the capital for the business. The general partners have the authority of day to day affairs of the company and they are liable for any business debts caused by the company. On the other hand, the limited partners have limited authorities and they are not personally liable for any business debts caused by the company. ...Download file to see next pagesRead More
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