In this module, we learned that companies must choose a legal form of business under which to operate. This form will influence how the business structures its resources and manages its assets. There are several options from which to choose, and each takes a different approach to how profits and losses are handled. Factors that affect which option to choose are: how taxes are handled, how owner liability is treated, and how easy it is to establish and operate the company.

There are five common forms of business entities:

Sole Proprietorship

Partnership

Corporation

S Corporation

Limited Liability CompanyLLC

Your assignment is to identify an example of each of these 5 types of business organization by driving around the town you live. The sign outside the business will often display the type of business operating there. Alternatively, you can look in the yellow pages or search online. Once you have an example of each type, write a 2-page essay that explains the most likely reasons why each business chose to operate as a sole proprietorship, a partnership, a corporation (S or C), or an LLC.