Welcome to WordPress. This is your first post. Edit or delete it, then start writing!
Incorporation of a business begins by taking legal actions to make your business a corporation. Since there are several options you should fist ask the question, “What type of incorporation would most benefit my business?”
An overview of some of the mostly used forms as listed below:
Simply put it means there is one owner who runs the company. The owner is responsible for all the company’s debts and liabilities.Here all personal assets are at risk; this extends to their spouses as well.
A partnership or general partnerships is one where the business is run by two or more partners. Here the partners are equally responsible for the liabilities and debts of the business. Each is liable for any debt made on behalf of the business.This type of partnership is often seen in family businesses. Everyone has equal liability and profit sharing but with no Perpetual succession.
This type of partnership is a combination of a general and a limited partnership. There are partners who invest in a business, yet the daily activity of the business is conducted by the general partners. They risk no personal assets, share in the profits and their only liability is their invested capital.
Known as a company, corporation or company corp. is incorporated under the applicable laws of a specific jurisdiction. Below is a list of the main characteristics of such a corporation:
- Limited liability
- Perpetual succession
- Separate legal entity
- Proper records must be maintained
- In most countries annual, semiannual and quarterly returns must be filed
- Various types of corporations are listed below each having advantages and disadvantages.
- Public companies (limited)
- Private companies (limited)
- Unlimited companies
- Company limited by guarantee
- Corporation not for business
A corporation not for business is most often used by non government organizations as well as other types of non- profit organizations to incorporate their non-profit businesses. Non-profit corporations have available to them special privileges in almost every country.
As one can see, there are numerous options in regards to which form of partnership or proprietorship would be most beneficial to the individual cause. Utilize these key ideas to determine which is best for you.