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Business Entities Limited Liability Company Forms

Business Entities Limited Liability Company Forms

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Instructions and help about Business Entities Limited Liability Company Forms

from an accounting perspective the three most common classifications of businesses are the sole proprietorship the partnership and the corporation let's start with the sole proprietorship a sole proprietorship is where one person starts a business and could be as simple as opening a lemonade stand in your neighborhood it's easy to set up you have full control over it and there aren't many tax requirements however there are some drawbacks in a sole proprietorship you have unlimited liability this means that if your business is unable to meet financial obligations a creditor like the bank can come after your personal assets such as your house or even your car the primary way you'd be financing your business is through bank loans or personal investments and the life of your business is only as long as your own now let's say you decide to open a lemonade stand but this time with a few friends this would be considered a partnership a partnership is qu

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