Professional Documents
Culture Documents
BUSINESS
ORGANIZATION
FORMS OF BUSINESS ORGANIZATION
Characteristics
Essential Attributes and
Selecting
Analyzing Business Needs and
Appropriate Business
Form
FORMS OF BUSINESS ORGANIZATION
DEFINITIONS
Sole General
Corporation
Proprietorship Partnership
Legislatively
Two or More Created and
Any Business
Persons Regulated
Owned and
Operating a Governance,
Operated by an
Business for a Ownership and
Individual
Profit Financial
Structure
FORMS OF BUSINESS ORGANIZATION
FORMATION
Sole General
Corporation
Proprietorship Partnership
No Formalities or Filing of Articles
Written or Oral
Legal of Incorporation
Agreement or
Documentation; with Secretary of
May be Implied
May be Implied State and
from Conduct or
from Conduct or Payment of
Actions
Actions Fees
FORMS OF BUSINESS ORGANIZATION
GOVERNING DOCUMENTS
Sole
General
Proprietors Corporation
Partnership
hip
None Required; Articles of
Most have Incorporation
Agreement create
None Required
specifying Rights, Corporation;
Duties and Bylaws prescribe
Obligations its Operation
FORMS OF BUSINESS ORGANIZATION
NATURE OF OWNERSHIP
Sole
General
Proprietorsh Corporation
Partnership
ip
LIABILITY
Sole
General
Proprietors Corporation
Partnership
hip
Sole Proprietor Partners are Jointly
Personally and Severally Liable
Shareholders
Liability limited to
Liable for All for all Partnership Extent of Capital
Debts and Obligations, in Contribution
Obligations Contract and in Tort [Limited Liability]
FORMS OF BUSINESS ORGANIZATION
TAXATION
Sole
General
Proprietors Corporation
Partnership
hip
Partnership not a
Not a Taxable Taxable Entity; Corporation
taxed as Separate
Entity; Income Allocations of
Entity and
(Loss) passes Income and Loss
Dividends/Capital
through to Sole allowed within
Gains also Taxed
Proprietor Partnership before
[Double Taxation]
Pass-Through
FORMS OF BUSINESS ORGANIZATION
MANAGEMENT
Sole
General
Proprietors Corporation
Partnership
hip
WITHDRAWAL OF OWNER
Sole
General
Proprietors Corporation
Partnership
hip
Partner Death or
Terminates Sole Withdrawal may Corporation has
Proprietorship Terminate Unlimited Life
Partnership
FORMS OF BUSINESS ORGANIZATION