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An entrepreneur is a legal person incorporated and administered under company law to carry out commercial, charitable, or other permissible activities. Most commonly, business entities are formed to sell a product or service. Many types of business entities are defined in the legal systems of different countries.
These include corporations, cooperatives, partnerships, sole proprietorships, limited liability companies, and other specifically authorized and designated types of business. The specific rules vary by country, state, or province. Some of these types are listed below by country.
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Forms of business ownership differ by jurisdiction, but there are several common entities:
A sole proprietorship, also known as a sole proprietorship, is owned and functioned by a single person. The owner is independent and can hire employees. A single owner has unlimited liability for all of the company’s liabilities, whether related to operating expenses or judgments against the company. All Company assets are privately owned, including, for example, IT infrastructure, all inventory, manufacturing or retail equipment, and any property belonging to the sole owner.
A partnership is a company owned by two or more people. In most forms of partnership, each partner has unlimited liability for the partnership’s debts. The three most common types of for-profit corporations are general partnerships, incomplete partnerships, and limited liability companies.
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The owners have limited liability, and the company has a separate legal character from its owners. The government or the private sector can own companies and be for-profit or organized as a non-profit organization. A privately held, for-profit company is owned by its shareholders, who designate a board of directors to run it and employ its officers. A small group of individuals may own a private, for-profit company, or it may be public and publicly traded.
A co-op or co-op is a limited liability company that can operate for profit or non-commercial purposes. A cooperative differs from a company in that it has members, not shareholders, and shares decision-making power.
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