Legal Forms of Business
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The right legal form of business determines the kind of business journey one ventures into. For instance, when one is considering the type of business, it needs one to do a lot of business consideration as well as investments. There are various forms of business with their cons and pros. Firstly, there is sole proprietorship as one of the business legal forms. It is one of the simplest forms of business. Here only one person is held responsible for all the debts and profits in the firm. The disadvantage with this form of business is that only one person is held liable for all the company’s loses. Also, one has the onerous duty of providing investments necessary for the business.
Secondly, a partnership is a legal business framework that entails two or more owners. Here, the capital needed is generated from all the members thus much better since it does not involve only one member providing the money for the business (Urich, 2013). This form of business is ideal for friends or a family that has the intention of going into business together. All the members bear the burden of managing the business. However, the liability and profit of the company is shared according to one’s capital contribution
Also, Limited Liability Company is another form of business that gives the owners the protection from personal liability for the company’s debts. However, the company can be brought into an end through the winding up of…
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