GEB-4455 Lecture Notes - Lecture 4: Master Limited Partnership, Limited Liability Partnership, Sole Proprietorship
Document Summary
How you form your business can make a tremendous difference in your longterm success. The three major forms of business ownership are (1) sole proprietorships, (2) partnerships, and (3) corporations. Each has advantages and disadvantages that we"ll discuss. It can be easy to get started in your own business. You can begin a lawn mowing service, develop a website, or go about meeting other wants and needs of your community. A business owned, and usually managed, by one person is called a sole proprietorship. That is the most common form of business ownership. Many people do not have the money, time, or desire to run a business on their own. When two or more people legally agree to become co-owners of a business, the organization is called a partnership. Sole proprietorships and partnerships are relatively easy to form, but there are advantages to creating a business that is separate and distinct from the owners.
