Forms of Business Organizations Essay Example | Topics and Well Written Essays - 500 words - 2

Forms of Business Organizations - Essay eventThese characteristics of the bushel possessorship distinguish it from a corporation and a limited liability company. A sole proprietor, for example, owns and manages a sole proprietorship, a feature that is different from observations in corporations and limited liability companies. More than ane mortal, for example, owns a corporation or a limited liability company. These owners argon called partakeholders while the owner of a sole proprietorship is called the sole proprietor. Board of directors who are distinct from the businesses owners manages corporations while limited liability companies focal point is flexible. Another difference between the three forms of businesses is the owners liability over the governments debts. While a sole proprietor is liable for all of the business liabilities, corporations and limited liability companies owners have limited liabilities that are restricted to their share contributions. Another dif ference between the forms of business organizations is the legal requirements to which they are subjected. While a sole proprietorship only requires the filing of the enterprises name, corporation, and limited liability companies must be registered.The organizations tax liabilities are also treated differently. While a sole proprietorship is taxed as a natural person through the proprietors income, a limited liability company is taxed at the business organizations level while a corporations receipts involves a double taxation in which the organizations earnings are taxed and shareholders are taxed on their dividends.The organizations also differ in their structural requirements.