Legal Ownership
No Description
MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
Sole Proprietorship
+ one person controls all aspects
+ Government exercises very little control
+ You get all the profits
- Can be difficult to raise money
- You bear all of the risks
-Personal assets may be taken to pay off debts remaining debts after failure.
Photo by florbelas fotographix
Partnership
+ Share decision-making and management responsibilities
+ Shared risk
+ Partners offer different areas of expertise
- Profits are shared
- You can be held liable for partners' errors
-There can be disagreements
Photo by worldwaterweek
Corporations
+ Corporations pay taxes and enter contacts as a separate entity from its owners
+ The personal assets of shareholders cannot be used to pay corporation debts
+ lenders more willing to help corporations
- You need a lawyer to set up a corporation, the lawyer will help files articles of corporations with the state official responsible for chartering corporations.
- Costly to start up
- If articles of incorporation are not written well, a corporation's activities can be limited
Photo by ell brown
Limited Liability Company
+ Taxation of a partnership
+ Limited personal liability for all owners
+ Simpler to operate than a corporation
- Limits to setting up a Limited Liability Company
- One owner cannot set up a Limited Liability Company
- Members, not shareholders can participate in managment
Photo by ilyinov
