Legal Forms of Business

Legal Forms of Business
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The right legal form of business determines the kind of business journey one ventures into. For instance, when one is considering the type of business, it needs one to do a lot of business consideration as well as investments. There are various forms of business with their cons and pros. Firstly, there is sole proprietorship as one of the business legal forms. It is one of the simplest forms of business. Here only one person is held responsible for all the debts and profits in the firm. The disadvantage with this form of business is that only one person is held liable for all the company’s loses. Also, one has the onerous duty of providing investments necessary for the business.
Secondly, a partnership is a legal business framework that entails two or more owners. Here, the capital needed is generated from all the members thus much better since it does not involve only one member providing the money for the business (Urich, 2013). This form of business is ideal for friends or a family that has the intention of going into business together. All the members bear the burden of managing the business. However, the liability and profit of the company is shared according to one’s capital contribution
Also, Limited Liability Company is another form of business that gives the owners the protection from personal liability for the company’s debts. However, the company can be brought into an end through the winding up of companies through a court order.

In case there is the death of any management members, the company does not come to an end.
The corporation is another form of legal form of business. The business itself is a separate entity from its owners, and this is important in that the owners cannot be held liable for the business debts. The corporation can be sued and sue on its own, separate from its owners. The disadvantage is that the corporation can wind up through the court order or when it runs bankrupt (Urich, 2013).
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Sources Relevant (yes or no) Credibility Rating (1-10)
Urich, T. F. (2013). Business organizations in the 21st century: A look at new legal forms for business that enhance social enterprise. Southern Law Journal, 23(2), 329-343. Yes 6
Crawford, T., & Bruck, E. D. (2013). Business and legal forms for graphic designers. Skyhorse Publishing Inc..Yes 4
Schwienbacher, A., & Larralde, B. (2010). Crowdfunding of small entrepreneurial ventures. No 3

Reference
Urich, T. F. (2013). Business organizations in the 21st century: A look at new legal forms for business that enhance social enterprise. Southern Law Journal, 23(2), 329-343.