Forms of

Business Organizations
Have an idea for a business?
All by yourself?
Sole Proprietorship
Owned by one
person
Owner keeps all the
profits
Relatively unlimited
control
Easy to
form
No separatio of owne from busines
n r s
Owne responsibl for all debts/liabilitie
r e s
Busine and persona propert ca be seize
ss l y n d
How can I start one?
How can I start one?
Few legal
requirements
Can be run from a
home,
garage, or van
Do you have a friend…
Do you have a friend…
and a good idea?
Partnerships
Owned by two or more
people
Share profits equally
(unless otherwise agreed
upon)
Partnerships
Owners share all the risks
equally
Fully liable without limit
(similar to a sole
proprietorship)
 Forming a
Partnership
Partnership Agreement

More difficult than

a sole
proprietorship
Corporations
Corporations
Legal entity/artificial
person
Separate from its owners
Corporations
Owners risk losing their
investments
Owners do not lose personal
assets
Harder to form
Corporations
State Charter and Organizational
Fees
 Let’s
Review
 Sole Proprietorship
Requirements for None
Organization
Legal Owner is the
Status business
Liabilit Unlimited
y Liability
Manageme Owner
nt decides
Dissolutio Owner
n decides/death
Ease of Just do
formation it
Duratio Death or
n disinterest
 Partnership
Requirements for Agreement of
Organization Parties
Legal Owners not a
Status separate
Liabilit entity
y Unlimited Liability
Manageme Owner have equal
nt say
Dissolutio Owners
n decides/death/
Ease of withdrawal/Bankrupt
formation cy
Duratio Moderately Hard
Withdrawal/Bankruptc
n y
 Corporations
Requirements for State Charter/Org.
Organization Fees
Legal Separate entity from
Status Owners
Liabilit Limited liability of
y Shareholders
Manageme Directors set policy
nt and
Dissolutio Appoint officers
n Does necessarily
Ease of end
Difficult
formation
Duratio Can be
n perpetual
Any Questions?
Any Questions?

D. Casey
mr.dc.robertson@gmail.c
Robertson
om
slideshare.net/Girator
youtube.com/user/MrTeachingTe
Resource
s:
http://www.paopen4businessbriefcase.state.pa.us/BStructure/SolePr
op.asp

http://www.portal.state.pa.us/portal/server.pt/community/reources/8826/corporation/53
3420

http://www.portal.state.pa.us/portal/server.pt/community/reources/8826/general_partner
ship/5
33421

http://www.dos.state.pa.us/portal/server.pt/community/business-
related_boards/13772

http://www.allbusiness.com/business-planning/business-structures-
corporations/686-1.html

http://www.dos.state.pa.us/portal/server.pt/community/corporations/12457/forms/57
1880