A business is defined by Wikipedia as “A company or cooperative venture organized for the benefit of the members”. A business can also be defined as a legal entity or association, in any one of its capacities. Such enterprises have either been formally registered or not. Businesses are generally of two types: for-profit and non-for-profit. Non-for-profit companies operate for the benefit of members or individuals and are generally supported by contributions or donations from individuals or groups.
Formally registered businesses have established corporate forms and records and generally maintain a separate identity from the shareholders. Limited liability companies (or LLCs) are formed for the same purpose of protecting the assets of the members but have special characteristics that make them distinct from corporations. There are some important differences between a corporation and a limited liability company.
The profit and loss account of a corporation are often separated from the management of the business by the use of a partnership agreement. A limited liability company has separate registration and accounting records. Limited partnership business types are often used when there is a high degree of business risk because of the involvement of third parties. Learn more about Gregory Packs their other services by visiting their official sites.
A sole proprietorship is a form of business ownership where no other person or body owns or controls a particular business. This form is sometimes referred to as being a partnership without partners. Under the laws of most states, a sole proprietorship is limited to the profits of the owners. No one other than the proprietor is allowed to bind the business.
Most partnerships and sole proprietorships allow the business owner to control major decisions of the business through a board of directors meeting at regular intervals. The most common types of board meetings are board of general manager, board of directors, and board of stock holders. Some companies have a board of directors that meet only at specified times and may be called the board of individual managers.
Some small businesses have a limited partnership or corporation as their main type of business. In these cases, there is usually a master Limited Partnership or LLC. The LLC is the formal name for the limited liability company that acts as the business. The business owner can designate one partner to be the general manager and another partner to be the secretary and accounting officer. There are many differences between sole proprietorships and limited partnerships, but they are all types of business ownership. Learning more about them will help you determine which would be best for your small business.