Forms of Business Organizations

Casey Robertson
Casey RobertsonBusiness and Computer Teacher à Ocracoke School
Forms of
Business Organizations
Forms of Business Organizations
All by yourself?
Sole Proprietorship
Owned by one person

Owner keeps all the profits

Relatively unlimited control

Easy to form
No separation of owner from business
Owner responsible for all debts/liabilities
Business and personal property can be seized
How can I start one?
How can I start one?
   Few legal requirements

   Can be run from a home,
   garage, or van
Do you have a friend…
Do you have a friend…
and a good idea?
Partnerships
Owned by two or more people
Share profits equally
(unless otherwise agreed upon)
Partnerships
Owners share all the risks equally
Fully liable without limit
(similar to a sole proprietorship)
Forming a
      Partnership
Partnership Agreement
More difficult than a
sole proprietorship
Corporations
Corporations
Legal entity/artificial person
Separate from its owners
Corporations
Owners risk losing their investments
Owners do not lose personal assets
Harder to form
Corporations
State Charter and Organizational Fees
Let’s
Review
Sole Proprietorship
Requirements for Organization    None

                 Legal Status    Owner is the business

                     Liability   Unlimited Liability

                Management       Owner decides

                  Dissolution    Owner decides/death

            Ease of formation    Just do it

                    Duration     Death or disinterest
Partnership
Requirements for Organization Agreement of Parties

                 Legal Status Owners not a separate
                               entity
                     Liability Unlimited Liability

                Management Owner have equal say

                  Dissolution Owners decides/death/
                              withdrawal/Bankruptcy
            Ease of formation Moderately Hard

                    Duration Withdrawal/Bankruptcy
Corporations
Requirements for Organization State Charter/Org. Fees

                 Legal Status Separate entity from
                               Owners
                     Liability Limited liability of
                               Shareholders
                Management Directors set policy and
                               Appoint officers
                  Dissolution Does necessarily end

            Ease of formation Difficult

                    Duration Can be perpetual
Any Questions?
Any Questions?




     D. Casey Robertson
          mr.dc.robertson@gmail.com
              slideshare.net/Giratorio
   youtube.com/user/MrTeachingTech
Resources:

http://www.paopen4businessbriefcase.state.pa.us/BStructure/SoleProp.asp


http://www.portal.state.pa.us/portal/server.pt/community/reources/8826/corporation/533420


http://www.portal.state.pa.us/portal/server.pt/community/reources/8826/general_partnership/5
33421


http://www.dos.state.pa.us/portal/server.pt/community/business-related_boards/13772


http://www.allbusiness.com/business-planning/business-structures-corporations/686-1.html


http://www.dos.state.pa.us/portal/server.pt/community/corporations/12457/forms/571880
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Forms of Business Organizations