When Form 8865 Ownership 2024

Okay, let's look at the basic types of businesses and then we'll look at how those are structured as well. So, the three basic types of businesses are going to be a service business, merchandising business, and a manufacturing business. Service businesses sell services. These examples would be accountants, lawyers, painting companies, and automotive repair shops. They're not selling a physical product but rather just the service. Merchandising companies actually sell physical products to customers. Examples would be grocery stores like Walmart, Home Depot, automobile dealerships, and sporting goods stores. Any kind of company that sells you a physical good. And then we have manufacturers. They take raw materials and convert it into something else. So, they actually are the ones that produce the goods. Examples are automobile manufacturers, clothing manufacturers, and Coke and Pepsi who make soft drinks. Alright, let's move on to the various types of business enterprises. So, I've got a list of 4 as we go along. One basic type of structure for a business enterprise is gonna be a sole proprietorship. That's gonna be owned by just one person. A business owned by two or more people is what we call a partnership. A business organized as a separate legal entity under State Corporation law and having ownership divided into transferable shares of stock is what we call a corporation. Now, an LLC or limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structure. We also have something called an S corp which is similar to an LLC. Let's break each one of those down a little bit more for you. So, the advantages to owning a sole proprietorship. Remember, it's just one owner. It's very easy to form. Since you're the only owner, you can dictate how you want...