Question

What are the four most common legal forms for organizing and operating a business? Please provide and example.

Answer 1

The Four most Common legal forms for organizing and operating a business are:

Sole Proprietorship: It means one owner business. For example: small business like grocery store, IT consultant etc.

Partnerships: It means Joint venture between two or more owners, it can be limited or general.For example Mr. X and Mr Y decided to open a clothing store together in a partnership.

Corporations: They are separate legal entities i.e distinct from their owners. For example: ABC co., Adidas etc.

Limited Liability Companies: It means cross between partnership and Corporations. For example: Google, Facebook.