We all have heard the word ‘business’, by definition, business is an organization or an enterprise entity that involves in commercial, industrial or professional activities. A company negotiates their activities through good production, services offer or retail of manufactured products.
What are the different kinds of business structures?
A sole proprietorship is owned by an individual who takes full ownership of assets and debt obligations.
The partnership is owned by multiple individuals that share duties to operate the business.
Corporation has unfavorable taxation rules for the owners of the business.
Lastly, the fourth business structure is a limited liability, it is the combination of corporation and partnership.
Businesses can be a small owner-operated company or a multinational corporation.
Prior to a business is formed, a business plan is created. The role of a business plan outlines the strategic intentions and logistics to achieve the goal.
Starting a business is challenging, as you must determine its legal structure, which affects tax liabilities and the necessary permits and licenses for legal operation. Additionally, you must consider your legal obligations to employees.
For more information on the fundamentals of business, check out this article on What Is Business? and explore additional resources on business legal structures.
It is better to learn how to run a business, for it is a self-paced activity.
