Forms of business ownership

The forms of business ownership and whatever

Unincorporated entity

business that is not recognised as a separate legal entity from its owners, meaning the owners are personally liable for the debts and obligations of the business.

Incorporated entity

entity that is legally recognized as a separate entity from its owners, providing limited liability protection.

Sole Proprietorship

Owned by a single person, no formal procedures required to set up. Is unincorporated. Can’t be involved in legal activity without the name of its owner. Owner benefits from all profits but is personally liable for any debts.

Partnership

A business owned by two or more individuals who share profits, losses, and management responsibilities. Partnerships can be general or limited, with varying levels of liability for each partner. Usually unincorporated.

Company

A type of incorporated entity and thus is a legal entity distinct from the people who own it called shareholders. Shareholders have no direct claim to profits. These also include profit and nonprofit companies. Also includes private and public companies.

Close corporation

A type of incorporated entity and is a taxpayer in its own right. No new ones are allowed to be formed since 2011 and typically has a limited number of shareholders, restricting the transfer of shares and maintaining a close-knit ownership structure.