Business Structures Essay

If person wants to moolah a fear, that person would tolerate to decide which structure he or she would want to use. To know what kind of structure he or she has to know what kind of blood he or she is trying to pelt along and who will feed in it with him or her. Structures range from sole proprietorships and confederations to plentys. When companies first start up, they see sole proprietorships or collaborationistships, but as they grow into bigger companies, they become corporations. When someone first opens a handicraft it may practiced be him or her, those companies consider sole proprietorships, meaning a business owned by one person. There are several returnss when course a sole proprietorship. First is it is the simplest type of business to start and run and also it is not regulated as much. Also, sole proprietorships pay cut back income taxes compared to other business structures. Last, when a fellowship is a sole proprietorship, decision-making ministration on the owners shoulders but the owner keeps all simoleons (Films Media Group, 2011). Even though there are some very sizeable advantages owning a sole proprietorship, there are also some disadvantages.The biggest advantage is also the biggest disadvantage, the bills, debts, and major obligations. If the owner does not pay the bills, the company cannot run. some other big disadvantage is the capital the business has. If the owner does not have some other capital invested into the company, the company will not grow. The know disadvantage is running the company when the owner leaves or dies. Because there is no one else with stock, the owner has to let the company go (Parrino, Kidwell, & Bates, 2012). The next business structure is a partnership, which consist of two or much owners that de jure run the business together. With a partnership, the owners know what his or her position in the company is and how the profits would be split. There are two distinct partnerships a general partnership and a peculiar(a) partnership. The general partnership has the same advantages as a sole proprietorship, but has one more disadvantage. All owners have unlimited liability regardless ofthe percentage in the company (Parrino, Kidwell, & Bates, 2012).To avoid the big issue with a general partner, the partner would sign into a limited partnership. In a limited partnership, the company can have general and limited partners. One or more general partner has unlimited liability while limited partners solitary(prenominal) deal with the obligations he or she provides. To qualify as a limited partner, he or she cannot engage in the managing of the business (Parrino, Kidwell, & Bates, 2012). The last business structure is the biggest and the last to get to. Large companies consider themselves to be corporations. Corporations consider themselves as a person, where the corporation can sue and also be sued, borrow money, and own assets like real estate. An advantage of a corporati on is that the stockholders have a limited liability for all of the corporations obligations. Because the corporation is a person, the corporation is taxed as a person on the income it earns (Films Media Group, 2011).ReferencesFilms Media Group (2011). Planning Your Business Research, goals, and business plans Video podcast. Retrieved from https//newclassroom3.phoenix.edu/Classroom/ToolContainer.jsp?context=co&contextId=OSIRIS40817068&activityId=16e92012-daa3-4692-89b0-622c50a227b6&profileId=4136b5d5-519c-4e35-a63a-f84741e11cd2&syllabusId=OSIRIS40817068&version= Parrino, R., Kidwell, D. S., & Bates, T. W. (2012). Fundamentals of Corporate Finance (2nd ed.). Danvers, MA John Wiley & Sons, Inc..