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    The document describes different types of company structures including sole traders, partnerships, and limited liability companies. Sole traders are owned and operated by one person, partnerships have 2-20 owners, and LLCs have 1-many owners and require a board of directors. Reporting requirements vary from tax returns only for sole traders and partnerships, to annual audited financial statements for public LLCs. Stakeholders are also defined as internal parties like management and employees, or external entities like customers, suppliers, and banks with interests in a company.

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    The document describes different types of company structures including sole traders, partnerships, and limited liability companies. Sole traders are owned and operated by one person, partnerships have 2-20 owners, and LLCs have 1-many owners and require a board of directors. Reporting requirements vary from tax returns only for sole traders and partnerships, to annual audited financial statements for public LLCs. Stakeholders are also defined as internal parties like management and employees, or external entities like customers, suppliers, and banks with interests in a company.

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    23 views2 pages

    02 ACCT 126 - Company Types and Stakeholders

    Uploaded by

    dalaiah walker
    The document describes different types of company structures including sole traders, partnerships, and limited liability companies. Sole traders are owned and operated by one person, partnerships have 2-20 owners, and LLCs have 1-many owners and require a board of directors. Reporting requirements vary from tax returns only for sole traders and partnerships, to annual audited financial statements for public LLCs. Stakeholders are also defined as internal parties like management and employees, or external entities like customers, suppliers, and banks with interests in a company.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    College of Science Technology and Applied Arts of Trinidad and Tobago

    ACCT 126 – Fundamentals of Accounting

    Company Types

    Company Description No of Accounting Reports required


    Type owner(s)
    Sole Trader A business that is owned and One only By law – only for tax returns
    operated by one person. The owner Maybe income, expenses,
    may hire employees. assets and liabilities for the
    Liability is most times unlimited, but bank
    can be limited.
    Partnership A business that is owned and Two to By law – only for tax returns
    operated by two to about 20 20 Maybe income, expenses,
    owners/partners. assets and liabilities for the
    Liability can be limited or unlimited. bank
    Most time the partners will
    require financial reporting
    Limited A business that is owned by one or One to Private LLC – all privately
    Liability more owners, and requires a Board many owned LLCs
    Company of Directors (BOD) to run its owners By law – only for tax returns
    operations. In T&T the BOD needs a Maybe income, expenses,
    minimum of two members. Directors assets and liabilities for the
    may (or may not) be owners. bank
    As suggested by the name, the Most time the owners will
    liability is limited. require financial reporting

    Public LLC – trading on the stock


    exchange
    Law - Annual Audited Financial
    Statements
    Reports from Management
    Reports from Internal Audit

    Other types of businesses


     Non-profit Organization
     Non-Governmental Organizations
     Public Sector Organizations

    Micro businesses are companies with annual sales and assets valued at less than $250,000US per
    year and with fewer than five employees, including the owner. A subcategory of small business,
    micro enterprises develop in a variety of industries; they may later grow beyond their original
    foundation, or stay the same size for the life of the company. 1

    1
    https://www.thebalancesmb.com/differences-between-micro-business-and-small-business-4159188
    College of Science Technology and Applied Arts of Trinidad and Tobago
    ACCT 126 – Fundamentals of Accounting

    Stakeholders
    Stakeholders are any individuals, companies or entities with an interest in a company/entity.
    The following are examples of internal and external stakeholders. The list is non-exhaustive.

    Stakeholders

    Internal External

    Management
    Customers
    / Director

    Employees Suppliers

    Owner(s) / Potential
    Shareholer(s) Shareholders

    Distributors

    Government

    Banks

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