What Type of Business to Choose By Would-Be Entrepreneurs Doug Hahn November 7, 2016 Featured Are you planning to put-up a business that would be a click to every prospective customer? If it’s a yes, well, it would be wise that you consider first various forms and types of firm, enterprise or business you are inclined to start. Allow us to guide you in this task with the following types of business you may have to consider. Sole Trader This oldest trading form is also known for its being the most common and simplest type of business. Here, it will be your sole responsibility to take care of everything in the operation of your business. Most likely, you will be called as the business proprietor. Choose this type of business if you are interested in having a small business or shop offering services like photography, hairdressing, gardening, beauticians, etc. Partnership Two or more people can form a partnership and any debts, profits and decisions associated with business with shared responsibility. This is actually common practices offering professional services like dentistry, solicitor issue, accounting and so on. It comprises at least two people with any debts, profits, and decisions associated with the shared business. Joint Stock Company A company comprises people who decided to put their financial resources together to create a joint capital stock. Each of these shareholders owns a share of certain business and expects a share of its profit. Shareholders put their money into their company and get a portion of the corporate shares, which is equivalent to the amount they invest in. A company is considered a legal entity, which is separate from the members or shareholders. It can loss or make a profit, be held responsible for employee actions, be sued and can go into a state of liquidation. Public Limited Companies (PLC) PLC is observed more complex and reserved for bigger companies when compared to the other business types. A company need to have more than a single director and a trading certificate in order to be considered as a PLC. Being part of a PLC gives you an authority to sell your shares on the stock market so that anyone can purchase them. Audit of the company is imperative so with the availability of certain information to specific agency. The other shareholders can also purchase PLCs. Franchises In this type of business, you will be using the successful business model of another company to establish your own restaurant, shop, food chain etc. You will have to purchase and trade off the company’s good name. A franchise is designed for a fixed period of time and covers specific location called territory. Just be mindful of the franchise contract as it may be complex. Workers Co-operatives This egalitarian type of business is formed by meeting workers’ mutual needs. Here, each person is equally significant. All decisions here are taken democratically and any profits can be equally shared or ploughed back into any business. Among the guiding principles of co-operatives are democratic control, co-operation among the co-operatives, concern for community, and independence and autonomy. In general, business enterprises can either be simple or be complex, but making decision as to the kind of business structure that suits your needs will be made easier once you have knowledge of terminologies mentioned above. The web portal sell my business also offers more information business types.