List and describe the four forms of business ownership

Answer 1

A sole proprietorship is a business that is owned, and usually managed, by a single
individual. As far as the law is concerned, a sole proprietorship is simply an extension
of the owner. Any earnings of the company are treated as income of the owner;
likewise, any debts the company incurs are considered to be the owner's personal
debts.
A partnership is a voluntary agreement under which two or more people act as coowners of a business for profit. There are several types of partnerships: general
partnership, limited partnership, and limited liability partnership.
A corporation is a business entity created by filing a form (known in most states as
the articles of incorporation) with the appropriate state agency, paying the state's
incorporation fees, and meeting other requirements. The specifics vary among states.
Unlike a sole proprietorship or a partnership, a corporation is considered to be a legal
entity that is separate and distinct from its owners. Because of a corporation's status
as a separate legal entity, the owners of a corporation have limited liability—
meaning they aren't personally responsible for the debts and obligations of their
company.
A limited liability company (LLC) is a hybrid form of business ownership that is
similar in some respects to a corporation while having other characteristics that are
similar to a partnership. Like a corporation, a limited liability company is considered a
legal entity separate from its owners. Also like a corporation—and as its name implies
—an LLC offers its owners limited liability for the debts of their business. But it
offers more flexibility than a corporation in terms of tax treatment; in fact, one of the
most interesting characteristics of an LLC is that its owners can elect to have their
business taxed either as a corporation or a partnership. Many states even allow
individuals to form single-person LLCs that are taxed as if they were sole
proprietorships.