Forms of
Business
Organisations
Partnership Joint Hindu Join Stock Cooperative
Sole Traders
Firms Family Firm Companies Organisation
Sole Traders/Proprietorship:
A sole proprietorship, also known as the sole trader or
simply a proprietorship, is a type of business entity that is
owned and run by one natural person and in which there is
no legal distinction between the owner and the business.
United Kingdom:
In Britain, anyone who begins work for themselves is
considered by the Government to be a self-employed sole
trader, regardless of whether or not they have advised HM
Revenue and Customs.
A sole trader can employ staff, but is personally responsible
for any losses the business makes.
United States:
A permitted exception to the sole proprietor (single owner)
stipulation is made by the Internal Revenue Service (IRS)
permitting the spouse of a sole proprietor to work for the
business. They are not classified as partners in the
enterprise, or an independent contractor, enabling the
business to retain its sole proprietorship status and not be
required to submit a partnership income tax return.
Partnership Firms:
Partnership is the relation between
persons who have agreed to share the
profits of a business carried on by all or
any of them acting for all.