Types of Business Categories
1 Sole Proprietorship
2 Partnership
3 Corporation
4 Limited Liability Company (LLP)
Sole Proprietorship
It is owned and operated by single person. Sole proprietors have complete control over their
business and enjoy a single round of taxation on personal income.
Partnership
It is owned by two or more people known as partners. Partners share in the management
and operation of the business, as well as in the risks and rewards.
Corporation
It is a separate legal entity created by shareholders. A corporation is more complicated to
create, as compared to the other three types of businesses. Its feature includes separate
legal entity, having limited liability, and enjoying perpetual succession.
Limited Liability Company
LLCs combine aspects of both partnerships and corporations. They retain the tax benefits of sole proprietorships and the limited liability of corporations.
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