The most common forms of business organizations include:
1. Sole proprietorship
- A sole proprietorship is a business owned by one person. The owner
may operate on his or her own or may employ others. The owner of the
business has total and unlimited personal liability of the debts
incurred by the business.
- A partnership is a form of business in which two or more people
operate for the common goal of making profit. Each partner has total
and unlimited personal liability of the debts incurred by the
partnership. There are three typical classifications of partnerships:
general partnerships, limited partnerships, and limited liability
Limited liability partnership
- A business corporation is a for-profit, limited liability entity that
has a separate legal personality from its members. A corporation is
owned by multiple shareholders and is overseen by a board of directors,
which hires the business's managerial staff.
Subchapter S corporation
Subchapter C corporation
- Often referred to as a "co-op business" or "co-op", a cooperative is
a for-profit, limited liability entity that differs from a corporation
in that it has members, as opposed to shareholders, who share
decision-making authority. Cooperatives are typically classified as
either consumer cooperatives or worker cooperatives. Cooperatives are
fundamental to the ideology of economic democracy.