Starting a Business Starting a Business Business Types

Selecting a Business Type How much money do I have to start my business? What will my liabilities be if I am sued or go bankrupt? How much control of my business do I want? How big do I expect my business to grow?

Sole Proprietorship A business owned and operated by one person. –Examples: Bookstores Coffee shops Plumbers Automotive repair Hair stylists

Sole Proprietorship Advantages –ease of startup –full Control –exclusive rights to profits Disadvantages –unlimited liability –sole responsibility –Limited growth potential –Lack of longevity

Partnership A business owned and controlled by two or more people. –Examples: Law firms Doctor’s offices Brokerage firms Ben & Jerry’s Ice Cream

Partnership Advantages –ease of start-up –specialization –shared decision making –shared business losses Disadvantages –unlimited liability –potential for conflict –Lack of longevity

Corporation A business entity that has some of the legal rights of a person, but is distinct from its owners.

Corporate Structure

Corporations AdvantagesDisadvantages