YOUR BUSINESS STARTS HERE
FIND OUT WHAT KAHN ENT CAN DO FOR YOU
YOUR BUSINESS STARTS HERE
FIND OUT WHAT KAHN ENT CAN DO FOR YOU
TYPES OF BUSINESS STRUCTURES
Sole Proprietorship
A sole proprietorship is a business which is owned and operated by an individual. The advantages of this form of business structure include ease of formation, relative freedom in governance and minimum government controls and restrictions. Disadvantages include less access to capital and financial resources. Also, this form of business organization provides less protection with regard to personal liability (if the owner’s company should get into a position of owing more to others than the amount of cash and other assets it has, the owner’s personal assets — home, car, etc. — may be required to be sold to pay the obligations of the business)
General Partnership
A general partnership is defined as two or more individuals carrying on an association as co-owners of a business for profit. Types of partnerships include general and limited. Before starting the company, the partners should agree on how much owner equity each partner must contribute, to the extent of which each partner will work in the company, and the share of the profits or losses to be assigned to each of them. This agreement should be prepared by an attorney in writing to avoid any future misunderstandings. As with sole proprietorships, a general partnership exposes the owners to personal liability. If the business is not successful and the partnership cannot pay all it owes, the general partners may be required to do so using their personal assets.
Limited Partnership
A Limited Partnership is an organization made up of a general partner, who manages a project; and limited partners who invest money but have limited liability are not involved in day-to-day management. Usually limited partners receive income, capital gains and tax benefits; the general partner collects fees and a percentage of capital gains and income. Typically Limited Partnerships are in real estate, oil and gas, equipment leasing, family partnerships but can also finance movies, research and development, and other projects