Ownership Structures

Ownership structures refer to how a business is legally and financially organized regarding who owns it. Common types include sole proprietorships (one owner), partnerships (two or more owners sharing profits), and corporations (a separate legal entity owned by shareholders). These structures determine responsibilities, liability, decision-making authority, and how profits are distributed. Choosing the right structure depends on factors like business size, goals, and risk tolerance. Understanding ownership structures helps clarity in management, taxation, and legal obligations, ensuring the business operates smoothly and aligns with the owners' objectives.