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Forms of Business Organizations

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Casey Robertson
Casey Robertson

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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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