Legal Forms of Business Ownership

Legal forms of business ownership refer to the different structures under which businesses can operate. Some common forms include:
Sole Proprietorship: A business owned and operated by a single individual, where the owner assumes all responsibilities and liabilities.
Partnership: A business structure where two or more individuals share ownership, responsibilities, and profits.
Limited Liability Company (LLC): A hybrid structure that provides limited liability protection to its owners while allowing flexibility in management.
Corporation: A separate legal entity owned by shareholders, providing limited liability protection and the ability to raise capital through stock issuance.
Cooperative: A business owned and operated by its members, who share responsibilities and benefits.
Choosing the right legal form of ownership depends on factors such as liability protection, taxation, management structure, and growth potential.