Types of Legal Ownership
Types of Legal Ownership
| Ownership Structures | Sole Proprietor | General Partnership | Limited Liability Company (LLC) | Corporation |
| Number of Owners | One or more | Multiple | ||
| Formation Difficulty | Low | Medium | ||
| Liability | Sole proprietor has unlimited liability. | Officers/shareholders are not typically responsible for the debts of the corporation. | ||
| Operational Requirements | There are relatively few legal requirements. | Formal board of directors, annual meetings, and annual reporting required. | ||
| Management | Sole proprietor has full control of management and operations. | Members have an operating agreement that outlines management. | ||
| Federal Taxation | It is taxed at the entity level. If dividends are distributed to shareholders, they are also taxed at the individual level. |
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Introduction to Business in a Technology World
©2011 Argosy University Online Programs
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