What is the difference of sole proprietorship from partnership and corporation?

Answer 1

In a corporation a business is owned by more than 2 people, In a partnership a business is owned by only two people, and in sole proprietorship there is only one owner.

Added by Stox723. The above answer is totally incorrect. You would be well advised to disregard it.

AnswerThe corporation is like a separate entity. It's as though it were a person separate from you and you just get to control it. If the corporation makes money, you can dispurse it as the president of the corporation, but there are rules that you need to follow as a corporation. If multiple people own the corporation, you'll need to have documented who owns how much and who controls which parts of the corporation. The advantage is that if the corporation fails and gets sued, there is a level of protection between the corporation and you. Any lawsuits against the corporation SUPPOSEDLY cannot reach through and attach YOUR assets, just the assets of the corporation. A partnership just means that 2 or more people equally own and are equally responsible for a business, and if the business is sued, the partners share equal responsibility but if the business succeeds, they share the wealth equally. A single proprietorship just means that YOU are the business, you control everything and you get sued personally if there are problems and YOU benefit if the business makes a ton of money.

DISTINCTION BETWEEN PARTNERSHIP AND CORPORATION

FROM: INTRODUCTION TO STUDY OF BUSINESS IN THE Philippines BY MIRANDA

Distinctions Between Partnership and Corporation

PARTNERSHIP

CORPORATION

a. According to the manner of Creation

Partnership becomes established through the simple expediency of an agreement among the members thereof.

A private corporation is created by operational law

b. With respect to Juridical Personality

Juridical personality obtained by the partnership from the moment the agreement among the partners has been reached and the papers for registration filed with the Security and Exchange Commission (SEC)

Private corporation acquires legal personality from the date the certification is issued by the SEC

c. Term of Existence

- a partnership may be stipulated in the articles of agreement by the partners.

-shall not be in excess of fifty years, although such term may be extended prior to its expiration for a like period.

d. Right of succession

it cannot be said to be true of a partnership.

- the right of succession is enjoyed by a private corporation

e. Powers

A partnership can engage in any field of business as the partners may decide provided it is not contrary to law, morals, or public policy.

The operation of a private corporation is limited to what is specifically stipulated in its existence. Hence, if a private corporation is to operate in a particular line of economic activity or business other then what the law authorizes, it must first obtain an amendment to its charter from competent authority.

f. Delectus Personae

the principle of delectus personae prevails. No new members may be admitted into the partnership without the unanimous consent of all partners.

It may admit new stockholders into the corporation without the need of obtaining the prior consent or approval of the other stockholder.

g. Management

Partnership may operate even without a designated manager. In such case, all the general partners of the partnership shall be deemed to act for the partnership.

Private corporation is run by a board of directors. It exercises its powers through the board

h.Liability to third parties

With the exception of limited partners, the members of a partnership are liable jointly (as a group) and severally, meaning individually, for all the liabilities of the business.

One main advantage of private corporation over partnerships is that the stockholders are not liable for over and above what they have subscribed fro shares of stocks.

i. Dissolution

It may be dissolved almost immediately, subject to the expressed will of the partners.

If it is agreed by the stockholders to dissolve the corporation for whatever reason or reasons, such intention shall require the prior consent of the proper government authority.

- general corporation may be dissolved at any time by legislative enactment, as when its charter or franchise is cancelled by the government.

Answer 2

sole propiership is a business owned by one person and general partnership is a business owned by two or more people, and a corporation is owned by lots of people who have stocks with the company

Answer 3

"There are also several easy ways to compare the difference between the three business business ownership types.

In terms of Ownership:

*Sole Proprietor - only has one owner.

*Partnership - has 2 or more owner, but not more than 4.

*Corporation - have not less than 5, but not more than 15 owners.

In terms of Business Life:

*Sole Proprietorship - Limited. When the owner dies, the business also dies with the individual.

*Partnership - Limited. The death of a partner also contributes to the death of the business, or by having a new partner.

*Corporation - Unlimited. Whenever one owner dies, the business could still continue along with other 14 business owner [if the case is there are 15 owners] and could replace the individual who died with another prospect individual

In terms of Liability:

*Sole Proprietor - Unlimited, but not to the extent of personal property.

*Partnership - Unlimited, but not to the extent of personal property.

*Corporation - Limited to every owner's capital.

In terms of Access to Capital

*Sole Proprietor - Limited

*Partnership - Limited

*Corporation - Unlimited, due to the fact that they can sell stocks.

In terms of Transferability

*Sole Proprietor - No

*Partnership - No

*Corporation - Yes

While some of the factors are mentioned above, it is better to understand that all the three forms denote various type of ownership.

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In most states in the United States a partnership is not limited to 4 partners and a corporation is not limited to 15 stockholders. A proprietorship can have value when the owner dies due to its customer base, franchises it holds, equipment it owns.

November 2012 update:

Most updates due start-ups, import & export and foriegn or residential alien status as well as the retention of foriegn student technology imperative to create jobs.

Sole proprietorship is formed by an individual licencesed to do business. Usually upon death of owner it can be absolved or surrendered spouce or next of kin for continued operations. Liability may exceed the business assets and include the personal assets of the business holder. Assets may be limited towards the business direct opperation holdings and assets of the owner but may reach unlimited, if they choose investment holdings of excess profits for future growth. Transfers of ownership is possible either registry the business as a limited liability for resale or sell of the business that may operate as a DBA or ficticious licensed name. Note:if the sole proprieter is a residential alien and pay taxes or ect separate to that of current business operations on private properties abroad they are restricted via jurisdiction laws. So, some assets may be sheltered liability.

Partnerships vary pertaining towards the partnership venture it can exceed well beyond 4 individuals under certain condition. The partnerships have either limited function in the partnership such as no controlling interest but an investment interest or a lesser per say portion ownership. Also there are foriegn entity partnerships that have global foriegn groups that invest into a business and are continget upon location of operation. Liabilities fall differently upon partners pending their investment or whether reside outside the state of incorporation such as a foriegn entity parrtnership. Assets may be limited towards the business and busiess parters yet some assets deem untaxable towards portion this operates ouside it's incorporated state the same shelters some libilities. Upon death of the formers these partnerships willusually have a continuation plan naming, or ellecting continuing operators the can access capital either through the home status of operation or foriegn access features.....Some partnerships pending nature of business operation can even be a limited co-operative. The issue of foriegn entity partnerships is ability or restrictions to sell off a partners right to another business group, corporation, individual and even government..........(these varies with states and various nations engaged with economic U.S. Trade) - common with import & export businesses or businesses held by families that live or originated in another nation.

Corporations are per right established as an independent entity that surpasses the life of the founder but there are "limited liability corporations" that too can be formed and operate as a sole proprietorship, partnership with the libility protection of a corporation where personal assets are not stripped or consider tanget to the business. The feature both limited and unlimited assets atainment pending sound management practices. Upon death of the founder and no new officers avail a limited liability corporation can continue through sale or be absolves. Not all corporation engage in stock shares an can be privately held but still have the access to sell bonds for raisng capital as well as establish investment portfolios. There are many start-ups operating under a limited liability corporation status for the sole benefits of legal liabilities granted corporations and the venture of stock capital as well as sales.

Answer 4

Sole Proprietor Business:- In this type of business, the owner is a single individual and he/she has unlimited liability of the business,i.e., in case he defaults on his/her loans, the various assets of his/her in personal name can be seized and used to recover the amount.

Partnership Firm:-Here, several individuals combine and form a firm, each having a share in the profits/losses of the company depending on each person's share in the initial capital.

Corporation:- In a corporation, the liabilities of the owner are limited.