Understanding Company Formation

Sole proprietorship, partnership, corporation, limited liability company (LLC)

Limited partnership, C corporation, S corporation, social enterprise

Sole trader, public company, private equity, startup

Franchise, cooperative, nonprofit, joint venture

Nonprofit Organization

Partnership

Corporation

Sole Proprietorship

A sole proprietorship is a business owned and operated by one person, with unlimited personal liability.

A sole proprietorship is a type of franchise owned by multiple investors.

A sole proprietorship is a corporation with limited liability.

A sole proprietorship is a partnership between two or more people.

Business License

Tax Identification Number

Partnership Agreement

Articles of Incorporation

To outline employee benefits and compensation.

To legally establish a corporation and outline its basic structure and purpose.

To create a marketing strategy for the corporation.

To provide tax benefits for shareholders.

Non-Profit Organization

Sole Proprietorship

Partnership

Limited Liability Company (LLC) or Corporation

A partnership agreement is a verbal agreement between friends.

A partnership agreement is a tax document for businesses.

A partnership agreement is a legal document that defines the relationship and terms between partners in a business.

A partnership agreement is a type of business license.

Employee Handbook

Annual Financial Report

Company Mission Statement

Articles of Incorporation or Bylaws

Private companies can issue stocks to the public, while public companies cannot.

Private companies are owned by the government, while public companies are privately owned.

The main difference is that private companies do not trade shares publicly, whereas public companies do.

Public companies have fewer regulations than private companies.

A memorandum of association is a financial report for shareholders.

A memorandum of association is a type of employee contract.

A memorandum of association is a marketing strategy document.

A memorandum of association is a legal document that outlines a company's structure and objectives.