Starting a Business Means Getting Organized(1/2)

Businesses are structured in different ways to meet different needs. The simplest form of business is called an individual proprietorship. The proprietor" class="hjdict" word="proprietor" target=_blank>proprietor owns all of the property of the business and is responsible for everything.

This means that the proprietor gets to keep all of the profits of the business, but also must pay any debts. The law recognizes no difference between the owner and the business. Another kind of business is the partnership. Two or more people go into business together. An agreement is usually needed to decide how much of the partnership each person controls.

There are limitedliability" class="hjdict" word="liability" target=_blank>liabilitypartnerships. These have full partners and limited partners. Limited partners may not share as much in the profits, but they also do not have as many responsibilities. Doctors, lawyers and accountants often form partnerships to share the profits and risks of doing business. A husband and wife can form a business partnership.

Partnerships can end at any time. But partnerships and individual proprietorships exist only as long as the owners are alive.