Categories
Financial Management

Corporate life cycle

  1. Starting up as a proprietorship
    1. One owner
    2. Easy to form
    3. less capital available
    4. less regulations to follow
    5. taxed as owner income
    6. limited amount of capital, issue in raising capital
    7. life of business same as life of owner
  2. Doing Partnership with Others
    1. Risk and reward shared by more than one person
    2. Partner can be a limited liability or general partner subjected to arrangement in the partnership agreement
    3. Less regulation to follow
  3. Forming a corporation
    1. Large number of owners
    2. More regulations to followed
    3. A legal entity and taxed on its own and not in owners income
    4. Unlimited life
    5. Access to more capital

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