ENT - Forms of Business Ownership [LESSON]

Forms of Business Ownership

In this lesson, the different types of business ownership will be compared. Additionally, we will discuss the importance of choosing qualified team members to accomplish common goals in a business endeavor.

Deciding the Type of Business Ownership | Knowledge Point

One of the first steps when creating and starting a business is deciding on the type of business ownership. This is a crucial first step because the form of ownership that is chosen will impact the legal structure, taxes, and risk associated with the business. There are four main types of business ownership: Sole Proprietorship, Partnership, Corporation, and Limited Liability Company (LLC).

Forms of Business Ownership | Activity

Click each cell of the chart below to learn more about the similarities and differences among the various forms of business ownership.

Team Building

Deciding on the form of business ownership is just the first step in starting a business. As an entrepreneur, building a team that will help you operate your business successfully is key to the business’s success. You may be able to begin operating your business with only yourself, but you will want your business to grow so eventually you will need to build a team to help you.

Team Building Tips

Forms of Business Ownership | Practice Activity

Practice your understanding of the forms of business ownership using the activity below.

Reflection

Reflect icon with Gavsby

Deciding the type of business ownership is only the first step in starting a business, however this first step can determine the success or failure of the business. In addition to forming the business ownership structure, a team of individuals who possess the necessary skills and share the same goals and vision for the business should be assembled. Entrepreneurs who surround themselves with a solid team understand the importance of the team to the success of the business.

Using your new knowledge of the four main types of business ownership, which type of ownership do you think would be the best fit for you?  

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