Kinds Of Small Business
Discover the kinds of small business. Small business opportunities are characterized with low initial investments, fewer numbers of employees, small amounts of returns, the total assets the business owns etc. The existing small businesses can be classified with regard to their legal structure and owner ship structure. They can either be online or offline kinds of small business depending ones decision.
Examples of small business are:
The sole proprietorship
This is simplest form in which various kinds of small business do exist. In this type of business, there is only one owner who as all the rights over all the business activities. The owner has unlimited access to all business property and is accountable for all business debts.
Among the advantages with which these kinds of business comes with include enjoying all the profits from the venture, this kind of venture doesn’t experience double taxation besides having very few regulations which one must comply with.
Partnership
These are also other kinds of small business. It is owned by more than one person. They can be two or a group. Most have their own constitution which is signed by a lawyer which states how the business assets are to be shared in case the partnership ends, what is expected of new members, how to share profits and losses etc. They have levied taxes unlike the corporates.
These kinds of business have quite a number of advantages which include having emotional support amongst members, having a larger initial capital since every member contribute towards the business, sharing of risks etc. However, most partnerships are always centers for disputes which in most cases hinder their success.
Limited liability partnership
In these kinds of small business, even though there are partners, there’s one single person who’s liable for other members actions. This is the only distinguishing factor between limited liability partnership and unlimited liability partnership.
The rules and regulations accrediting any kinds of small business to be a limited liability partnership vary from country to country.
Close Corporation
Running close corporations is cheaper as compared to the normal companies. They normally enjoy relaxed rules and regulations as compared to the ordinary corporations. In these kinds of small business, the shareholders operate just in like the partnership kinds of small business.
They cannot trade in the stock market and in most countries have regulations governing the formation of these close corporations. They can only be allowed to have members not more 35 but this depends entirely on the rules and regulations forming these close corporations.
In fact, these kinds of small business blend together the attributes of sole proprietorship and partnership.
There are various ways in which one or a group of people can decide to run their small business. With the spread of internet and various affiliate marketing programs, very many kinds of small business have gone online. For instance those who are affiliate marketers at click bank.com, although one may decide to start a business dealing in specific commodity, whether transactions are done online or offline clearly becomes a distinguishing factor.
