Business Ownership Types, Partnerships, and Liability Terms

Sole Proprietorship

A business owned by one person

creditor

a lender

Partnership

a business owned by two or more people

General Partnership

anouther name for partnership

Limited Partnership

1 partner invests everything but has no say in anything and 1 partner who has every say but no investing

Limited Partner

the partner that invests all the money into the business

Surety

assuming another's debts/ saying you will pay debts in original payment fails

Cosigning

agreeing to take responsibility for loan payments if the other person fails to make them

Corporation

a business that is its own organization independent and sperate of owners

Private Corporation

a buisness not owned by 1 owner and not operated by government

Public Corporation

1 owner and a business run by government

stock

A share of ownership in a corporation.

Subchapter S Corporation

a business with less than 35 and abides by certain restrictions

LLC

Offers limited liability to owners and flexible tax treatment, so personal funds can not be drained when sued