Draft a comparison statement on sole-trader ship, partnership & companies limited by shares
Ownership: A sole-trader ship is a business that has a single owner who is responsible for making decisions for the company. A partnership consists of two or more individuals who share the responsibility of running the company. A company limited by shares is one of the most recognizable business structures and has a separate identity from the owners of the company. One or more owners may participate as shareholders of a corporation.
Formation: Sole-trader ship begins automatically when a single business owner decides to open a business. A partnership business automatically begins when two or more people decide to go into business. A company limited by share is required to file articles of incorporation.
Documents: There are no documents to file to begin a sole-trader ship or a partnership. However, companies limited by shares are required to file articles of incorporation, also known as a certificate of formation.
Liability: Sole-trader ship and partnership business have unlimited liability for all debts and liabilities. But companies limited by shares have limited liability for all debts and liabilities.
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