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Companies today can be categorized as being one of a handful of different types of entities. General categories are as follows: private companies, in collaboration (where it can fall into one of three categories – general and limited liability corporation), limited liability company or a cooperative. This, however, only the general types of business entities, the different countries also have their own different types of entities. For example, in Chile are four types of business entities, in Indonesia there are ten, but in Luxembourg are the only two. For those looking to start their own business, sorting their business as a whole can be a harrowing task in itself, which is why business consultant is important.
Being that there are so many different types of units out there, a small business consultant is necessary every time a business owner wants to set up a business. Here is a look at the two main types of entities.
Corporation
There are many companies in the world today that can be classified as a corporation. According to the reference site, the company is “legal entity created under state laws designed to bring the unit as a separate legal entity with its own rights and liabilities distinct from its owner.” As the book RC Clarke entitled “Corporate Law” and the book Henry Hans Mann’s “The Anatomy of corporate law,” the company has four different core characteristics:
– Legal
– Limited liability
– transferable shares
– Centralized management under the broad structure of
significant characteristics of modern enterprises, the corporation enjoyed by their owners, shareholders and employees. If the company should fail, either by lack of small business consultant or other reasons, they are not directly responsible for the loss or debt that a company incurs, investors stand only to lose their investment but employees will lose their jobs, the debt will not exceed .
corporation
A corporation is a relatively new addition to the types of entities covered by the business consultant. According to journalist LLC, the limited liability company got its start in Germany in 1892 when the government passed a law authorizing the establishment Gesellschaft mit beschrnkter Haftung (GmbH), the forerunner of the modern private enterprises.
A modern corporation is a very flexible type of business units sharing characteristics of a corporation, partnership, and private companies. Characteristic it shares with the company is that it has limited liability, but a characteristic it shares with a partnership is that it can “go through taxpayers’ money.” This is where the income units runs through its investors and owners.
A corporation, due to flexible nature, can choose to be taxed as a sole proprietorship, partnership, S corporation, or a C corporation.
any business owner wants to start his or her own business would do well to speak to a business consultant first, as these experts know the ins and outs of business entities of any type they may a.
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