Selecting Forms of Business Ownership

When entrepreneurs establish a business, they must decide the form of business ownership. There are three basic forms of individual ownership, partnerships, and limited liability companies. Preferred forms affect profitibilitas, resikio, and the value of the company.

1. Individual Ownership
Owners of private ownership is the sole owner. A single owner can obtain loans from creditors to help fund the company's operations, where the loan itself does not reflect a property. Have the sole owner of the obligation to cover all payments due to the loan but no longer need to share business profits with its creditors.
Individual ownership advantages
- All benefits will be received by a single owner
- Organizations that easy
- Full Control
- Lower Taxes
Individual Ownership Losses
- The owner of a single bear all losses
- Liability is not limited
- Funds are limited
- Expertise is limited
2. Fellowship
Business owned simultaneously by two or more people is called fellowship. The owners must register their partnership to the State and may also apply for work permits. Approximately 10 percent of all firms form alliance.

Guild Benefits
- Additional funds
- Distribution losses
- More specialized
Losses alliance
- The division of control
- Liability is not limited
- The division of profits
3. Company Limited
An entity listed in the paying state taxes and legally indistinguishable from the owner. To establish a limited liability company, a person or a group must make pereseroan limited certificate of establishment, namely the dokuman to establish business diguanakan. Deed of establishment covers important aspects of the company. Limited liability company is divided into 2, namely: the Company closed and open company
Limited Company Benefits
- Limited Liability
- Access to funding
- Transfer of ownership
Limited Liability Company Losses
- Organization of high costs
- Financial Disclosure
- Problem representation
- High taxes

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