What are the different types of business organizations that a business can operate under?
A business can operate as a sole proprietorship which simply means that it is an extension of the human being who formed the business. For instance, Joe Jones doing business as the ABC Company may be a sole proprietorship. What that means is that the only legal entity that is involved in that business is Joe Jones himself. The ABC Company is simply a trade name or what some people call a fictitious name for Joe Jones himself. Other forms of business organization are partnerships, corporations, limited liability companies and limited liability partnerships. There are other forms of organization but those are the most common ones. Most people before going into business form either a corporation or a limited liability company because that provides them with some protection from contract liability. That is if the corporation enters into a contract which is not guaranteed by the people that are involved in the corporation then the only entity that is liable for that contract is the corporat
A business can operate as a sole proprietorship which simply means that it is an extension of the human being who formed the business. For instance, Joe Jones doing business as the ABC Company may be a sole proprietorship. What that means is that the only legal entity that is involved in that business is Joe Jones himself. The ABC Company is simply a trade name or what some people call a fictitious name for Joe Jones himself. Other forms of business organization are partnerships, corporations, limited liability companies and limited liability partnerships. There are other forms of organization but those are the most common ones. Most people before going into business form either a corporation or a limited liability company because that provides them with some protection from contract liability. That is if the corporation enters into a contract which is not guaranteed by the people that are involved in the corporation then the only entity that is liable for that contract is the corporat
