Beruflich Dokumente
Kultur Dokumente
Form of
Ownership
Phoebe Jane F. Dangel
Considerations
1
Tax
Considerations
Liability
Exposure
Managerial
Ability
Business
Goals
3
Start-up and
future capital
requirements
Management
Succession
Plans
4
Control
Cost of
Formation
The Sole
Proprietorship
Forms of
Ownership
The
Partnership
The
Corporation
The
Cooperative
The
S Corporation
The Limited
Liability
Company
The Joint
Venture
Other forms
Forms of Ownership
FIGURE 3.1
Sales
Sole Proprietorships
71.9%
C Corporations
6.4%
S Corporations
12.6%
5.3%
Limited Partnerships
1.4%
General Partnerships
2.3%
Forms of Ownership
FIGURE 3.1
Sales
C Corporations
Sole Proprietorships
General Partnerships
Limited Partnerships
Limited Liability Companies
S Corporations
55.8%
11.8%
3.2%
8.0%
7.4%
13.9%
The Sole
Proprietorship
Easy to
Discontinue
Least Costly to
Establish
Advantages
5
No Special Legal
Restrictions
3
Profit Incentive
4
Total DecisionMaking Authority
Lack of
Business
Continuity
Limited Access
to Capital
Disadvantages
Feelings of
Isolation
Limited Skills
and Ability
The Partnership
An association of two or more people who coown a business for the purpose of making a
profit.
Advantages
o
o
o
o
o
Easy to Establish
Complementary Skills
Division of Profits
Larger Pool of Capital
Ability to Attract Limited
Partners
o Little Governmental Regulation
o Flexibility
o Taxation
Disadvantages
Limited Partnerships
A modification of a
general partnership.
Limited partnerships
are
composed of at least
one general partner
and at least one limited
partner.
*General Partner
*Limited Partner
He or she has
unlimited personal
liability for the
partnerships debts
Treated as investors in
the business venture
with limited liability and
therefore can lose only
the amount they have
invested in the
business
Limited Liability
Partnerships
The Corporation
The Corporation
A corporation (also
known as C corporation)
is an artificial legal entity
created by the state that
can sue or be sued in its
own name, enter into and
enforce contracts, hold title
to and transfer property,
and be found civilly and
criminally liable for
violations of the law.
Requirements for
Incorporation
1. The Corporations Name
2. The Corporations Statement
of Purpose
3. The Companys Time
Horizon
4. Names and Addresses of the
Incorporators
5. Place of Business
.
.
.
11. Rules under which the
corporation will operate
The Corporation
Domestic Corporations,
conducts business in
the state in which it is
incorporated
Foreign Corporations,
conducts business in
another state
Alien Corporations,
formed in other
countries and conduct
business in the United
States
Publicly held
corporations, have a
large number of
shareholders, and their
stock is usually traded
on one of the organized
stock exchanges
Closely held
corporations have shares
that are controlled by a
relatively small number
of people, often family
members, relatives, or
friends
Professional corporation
offers professionals such
as lawyers, doctors,
dentists, accountants,
and others the
advantages of the
corporate form of
ownership
Advantages
o Limited Liability of
Stockholders
o Ability to Attract Capital
o Ability to Continue
Indefinitely
o Transferable Ownership
Disadvantages
The Corporation
The
Cooperative
The Cooperative
Organizing a Coop
Credit Cooperative
Consumer Cooperative
Producers Cooperative
Multi-Purpose Cooperative
Agrarian Reform Cooperative
Workers Cooperative
Electric Cooperative
Insurance Cooperative
Cooperative Bank
Housing Cooperative
Types of Coop
Limited liability
Continuity of life
Free transferability of interest
Centralized Management
Thank You