LEGAL BUSINESS STRUCTURE

One of the more important things to determine when dealing with a business is what type of business structure it is. Are you dealing with a proprietorship, partnership, joint venture, or corporation, etc? And then you need to break that down further to the type of partnership or corporation, as well as its place in the corporate structure - division or subsidiary.

  1. Corporation - An artificial being, existing only in the contemplation of the law. Ownership by is shareholders, who have a limited liability (amount of money invested in the shares of stock).

  2. Limited Liability Partnerships - This type of business organization is like a partnership in some respects and like a corporation in others. This form of organization is now authorized in 45 of the United States and in the District of Columbia.

  3. Partnership - Business that is owned by more than 1 individual. Depending upon the type of partnership structure, the individuals are potententially liable for all debts of the business.

  4. Proprietorship - Business that is owned by an individual. The individual is personally liable for the debts of the business.