Structure & Different Forms Of Business Ownership

If you have given a chance to own a business, which form of business ownership do you like to establish and why? No single form of ownership will give you everything you desire. You’ll have to make some trade-offs. Because each option has both advantages and disadvantages, your job is to decide which one offers the features that are most important to you. Specify your business, its advantages, and disadvantages and support your details with examples (if possible). Your answer must be between 1-3 pages, double spaced, Time New Roman, font 12 sizes.
Provide your resources and citations.
If you’re starting a new business, you have to decide which legal form of ownership is best for you and your business. Do you want to own the business yourself and operate as a sole proprietorship? Or, do you want to share ownership, operating as a partnership or a corporation, private limited companies, cooperatives, Crown corporations? Some of the questions that you’d probably ask yourself in choosing the appropriate legal form for your business.

Checklist:

1) In setting up your business, do you want to minimize the costs of getting started? Do you hope to avoid complex government regulations and reporting requirements?
2) How much control would you like? How much responsibility for running the business are you willing to share? What about sharing the profits?
3) Do you want to avoid special taxes?
4) Do you have all the skills needed to run the business?
5) Are you likely to get along with your co-owners over an extended period of time?
6) Is it important to you that the business survive you?
7) What are your financing needs and how do you plan to finance your company?
8) How much personal exposure to liability are you willing to accept? Do you feel uneasy about accepting personal liability for the actions of fellow owners?