Basic forms of ownership

Although forms of business ownership vary by jurisdiction, there are several common forms:

* Single: A sole proprietorship is a business owned by one person. The owner may operate on its own or may employ others. The business owner has the personal responsibility of the debt issued by corporations.
* Partnerships: partnership is a form of business where two or more people operate for the common purpose that often makes a profit. In almost all forms of partnership, each partner has personal liability of the debts occurred by the business. There are three typical classifications partnerships: general partnerships, limited partnerships, and limited partnerships.
* Corporation: A corporation is either limited or unlimited liability company having a separate legal personality from its members. Corporations can set up for-profit or not-for-profit. The corporation is owned by several shareholders and is overseen by a board of directors, which employs a business managerial staff. In addition to the model of private enterprise, there is a model of state-owned companies.
* Cooperative: Often referred to as “a” co-op, the cooperative is a limited liability company entity that can manage for-profit or not-for-profit. A cooperative differs from the company in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are usually classified as consumer cooperatives or worker cooperatives. Cooperatives are basic to the ideology of economic democracy.

For a list of state-by-state legally recognized business forms, see Types of business entities.