Business Plan, FOB, types of businesses

business owned and run just by one person

• partnership

• corporation

• proprietorship

business owned and controlled by two or more people who have entered into an agreement

• corporation

• Partnership

• Proprietorship

separate legal entity formed by documents filed with a state.

• partnership

• corporation

• proprietorship

Gives owner sole control over all business decisions.

Owner receives all profits made by the business.

Can determine how those profits are used

• corporation

• franchise

• proprietorship

If the business fails, the owner has almost no shelter from creditors

• corporation

• partnership and proprietorship

• proprietorship

Owned by or more shareholders and managed by a BOD. Several owners who invest in business by purchasing shares of stocks. More difficult to form. Must meet legal requirements. Not all owners have direct involvement in decision-making

• proprietorship

• corporation

• partnership

›a written agreement among all owners.

• Partnership agreement

• Corporation Agreement

• BOD Agreement

›No business name needed (if operating for several years & this is your primary job, need required gov’t licenses and permits.

›Must Account for income and expenses, pay taxes on profits.

• Partnership

• Proprietorship

• Corporation

an independent business with fewer than 500 employees.

• intermediary

• small business

• service

a written description of the business idea and how it will be carried out, including all major business activities.

• small business

• business plan

• service