Although we classify the business into two main categories, yours and others, so either you can work for someone else or open your own firm and hire staff which can work under you.

There are further other categories of business too. They are as follows:

1. General Partnership:

General partnership consists of two or more than two may be married couple handling a same business. They share all the profit and loss at the same time. As they are equal partners, they have to agree on every company decision, if one disagrees, it won’t be considered. Both are equally liable for debts of partnerships. Before getting into this, partners must have to sign a general partnership agreement which put some conditions according to the situation.

2. Sole Proprietorship:

Sole proprietorship is the most commonly found types of business structure in which the whole firm belongs to one person and he is solely responsible for all the loss and profit. He has the authority to hire or fire anyone. He can enjoy less tax and fewer legal controls and more flexibility regarding the management. In the case of debts, he is personally liable for all the loss.

3. Limited partnership:

The limited partnership is that when one is a general partner and some are limited partners. Limited partners in that company’s share all the profit, but they are not bound to share the loss. Sharing of their loss depends upon the extent of investment. The loss and other debt issues are the headache of the general partner and he is personally viable to debts. There may be a one limited partner or more according to the company.

4. Corporation:

A Corporation is a vast form of business structure. If you work in a corporation, it will give you the benefit of vast yield and financial benefits, but along with all these benefits, there is some cost too. The Corporation has high amount of the license fee and obviously if you work in a firm, many things will get out of your hand. These corporations are made for profit and nonprofit use too.

5. Limited Liability Partnership (LLP):

This type of business is similar to a general partnership, but they are different in a sense that in general partnership you are not responsible for each other, but in limited liability partnership, you have to sign a document which states that you are also responsible about your partner too. This type of business structure is used where there is a huge risk of being in a fraud for example, lawyers and accountants use this type of partnership in order to secure themselves.

6. Nonprofit Corporation:

These types of corporations are those who have specific types of aims to achieve rather than the interests of profit. Mostly charity organizations are nonprofit corporations because they raise the funds for the public interest.

7. Joint ventures:

Joint ventures are the type of business which allows you to do business for a limited time. If you want to do business just for a time being. Joint ventures are the best option for you.

8. Trust:

Trust is a relationship in which one person holds the property of one for the benefit of another. This is alternative to mortgage in which two people are involved, one is the borrower and other is the lender. This type of relationship has three persons in which the third person holds the property of first, as a security of the second. That person is known as the trustee.

9. Tenants in common:

This type of structure involves two people hold a same business with different identities.