Types of Companies

In the United States there exists three basic forms of companies: the company of only one owner, the collective society and the anonymous society or through shares. Only the anonymous society is authorized to issue shares; however, to know even better the different aspects of this anonymous society, we will also study the company of only one owner and the collective society.

Companies of One Only Owner and the Collective Society
Have you ever stopped to think why you can’t invest in a restaurant, dyer’s shop or in the ultramarine shop in the corner? The reason rests in that such businesses are in the majority of the cases established as business of an only owner or as collective societies and not as societies whose shares can be acquire at the stock exchange market. In fact, the number of companies of these two types greatly exceeds those of anonymous societies.

The dyer’s shop that is near your house is a good example of a business of only one owner.  The fact that a business of this nature will succeed or fail, depends almost exclusively of the ability and effort of its owner and sometimes also from the members of his family that collaborate with business”, due that this type of business require of many hours of work and a strong spirit of sacrifice from all the members of the family.

The owner of dyer’s shop, which is now being used as example, has to do long working hours and during them several and different commitments. To treat the clients in courteous way is only part of them.

Aside from that, he has to know all the technical aspects of the business and to be able to supervise the work of the employees.

He also has to maintain in contact with the providers, do the accounting, and prepare the payroll, present the tax declarations and to have a minimum of knowledge about real state and commercial sites.

And that is not all: we must add that the owner of this type of business has unlimited responsibility, that is that he not only responds with the goods he has contributed too the business but also with its own.

It’s like an orchestra man that walks at the beat of its own music.

If when time has passed the business prospers, many of these business of only one owner turn into the form of collective societies. (It could also happen that since its foundation the business would adopt this legal form). Although, in this case, there still is an unlimited responsibility, to do business under the form of a collective society supposes the enjoying of a series of advantages that are not given in the case of an individual businessman. Yes, in effect, the existence of several partners permits to have different points of view about the business in general. Is to assume, a thing of great importance that the personality and knowledge of the different partners complement each other. Also, partners usually always contribute with capital. The normal sources for financing one-person business and collective societies are the family, friends and local banks. The lack of capital is the main cause of failure for many individual businessmen and collective societies, although the first still have the resource of becoming the second.

Many businessmen assume partnerships to acquire financial and technical resources necessary for the growth and expansion of their businesses.

Beginner Money Investing What is a share? Going Out To the Market: SEC Anonymous Societies That Quote On the Stock Exchange Market Capitalization of Anonymous Societies Types of Companies Anonymous Societies Going Out To the Market: Procedures How to Invest Interpretation of Stock Exchange Chart That Appear On the Financial Pages