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Market Equilibration Process Paper

716 words - 3 pages

Forms of Business
Tiffany S. Eubanks
LAW 531
November 27, 2011
Jonathon Jamison

Forms of Business
There are seven types of businesses considered for week two and each display a different way of running a corporation. The seven types are: sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. Each have their own perks and could be a preferred way of owning a company. When starting a company, one could look at these options and select what opportunity could be best for them.
Sole proprietorship- This type of business cost less to begin because most the legal steps are shortened because of one ...view middle of the document...

A corporation like so could be any size.
Limited liability company- This is a combined partnership with a corporation. The company supplies the owners with limited liability, which consists of having a little of both type of characterizes. With this it could be for a business with one owner is wanted. Here again the owners are protected from personal liability of one another. Also a good thing is an LLC can be taxed as a solo proprietor if wanted. An example could be a small company that wants to separate its personal liabilities from its business if a lawsuit was to happen.
S corporation- The good thing about a S corporation is that they do not pay any federal taxes. The income is passed to the shareholders involved with the company, reported through them in return. This provides protection from creditors. If 25% of the S corporation gross receipts pass income for more than three years strait the S statues will be dropped.
Franchise-This would be using another business as your own. One could think of the word “chain” like with restaurants. ...

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