The choice for a start up – corporation, partnership, sole proprietorship

[Alexandoy]

One nephew asked about the type of business registration that which is the best for his plan of business. I explained the sole proprietorship which is the most common for a small business especially when you can handle the operation by yourself. A partnership is fun if all the partners will be pitching in to help in the business. But be aware that friction might develop which can lead to arguments.

A corporation is the best because it is a democratic way of handling business. You register a company in the SEC (securities and exchange commission) with the list of incorporators and directors of the board. The chairman is voted by the board and the president is selected by the chairman. The board is the supreme body that can change the president and even the chairman anytime. My nephew said that for a partnership having more than 5 members it looks like a corporation is more like it.

 

[Mika]

I do not have much faith in single ownership business. If you are the only owner of the business, your business does not have much room for growth because you will always have limited funds for investment, you will also have limited knowledge and skills. A partnership can be a better choice because you will have more money for investment, you will have extra hands to work

 

[Samuel72]

Well as for me I prefer so sole proprietorship this is because I would like to have my own independent and control over my business. but some people prefer partnership business this is because it will be more easier for them to control the business and who's who will never lack ideas or experience in the business but in partnership business you don't have ownership of the business.

 

[Jasmine]

It all depends on how much money you have and what your priorities are. If you have small funds and if you want full control over your business, sole proprietorship is the best option. If you have small funds but want to start big, partnership firm can be a better option.

 

[Abigael]

For a large scale business, then I prefer that one gets into partnership or corporation. They are much better in getting enough capital to start it and running it with other people will be so much easier. But for a small scale business, sole proprietorship would not be bad at all. One can get enough capital and run it alone.