Types of Business Organisations: Partnership, Cooperatives, Limited Liability Company

Business organisation

Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Types of business organisations are:....................................................................................5
CONCLUSION................................................................................................................................9
REFRENCES...................................................................................................................................9

INTRODUCTION
There are any types of business organisations and they are having different legal
consequences. It is important that correct type of business organisation should be
selected so people will not face any problem (Puente and Schneider, 2020). In the given
case, Sam has many options such as, partnership, cooperatives, limited liability
company. Types of business organisation is discussed in report.
MAIN BODY
Sam can opt for the partnership business for his IOM solutions. In this type of
business structure the company is owned and operated by two or more bodies. The loss
and the profit gained from the company are shared between the partners of the
company. The business partnership is legal relationship between two or more partners
of the company, the relation can be written agreement. The investment of money in the
company is done by each partner of the company and hence they can share the profit
made by the company and also the losses of the company. The partnership in the
company is registered with the state the organisation is operating. The agreement of the
partnership is made strong by deciding the allocation of the decision making power and
the resolve methods of the disputes (Miftahuddin, 2019). All the situations and what if’s
are answered in the agreement.
The payment to the partners is not given on a regular basis as they are the owners
and not the employees. The partners have provided with their part of profit and loss
each year. The payment is made in accordance with the agreement and the payment of
the partners is taxed individually. There are different types of partnership such as:
General partnership (GP) - the owners in this partnership have the liability for the
lawsuits as well as the debts. The partners are involved in the day to day operations of
the company.
Limited partnership (LP) – the owners in this partnership manage the business
and are liable for the decisions made by them. The partners who do not take the
decision are not liable for the liability.
Limited liability partnership (LLP) – the general partners and the partners are
extended with the legal protection with the liabilities in this partnership. This partnership