UK Forms of Business Organisation
When these earnings are distributed as dividends, the shareholders pay taxeson these dividends (Fred Chico Lager, 1994). Corporate profits are thus taxed twice—the corporation pays the taxes thefirst time and the shareholders pay the taxes the second time. In addition to the three commonly adopted forms of business organization—soleproprietorship, partnership, and regular corporations—some business owners select otherforms of organization to meet their particular needs (United States Census Bureau 2011).
In a sole proprietorship, one individual owns and controls the business. The person handles all complains from customers, bears all risk of ownership, make decisions and most importantly the person receive all the benefits from the business .
Fred Chico Lager (1994). Ben & Jerry’s: The Inside Scoop. New York: Crown Publishers.2 IRS (2015).
“SOI Bulletin Historical Table 12: Number of Business Income Tax Returns, by Size ofBusiness for Income Years 1990-2013.” IRS.gov.
United States Census Bureau (2011). “Number of Tax Returns, Receipts, and Net Income by Type ofBusiness.” Census.gov.
The Bill and Melinda Gates Foundation (2016). “Who We Are: Foundation Fact Sheet.”Gatesfoundation.org.
Fulghieri, P. (2009). Organization and Financing of Innovation, and the Choice between Corporate and Independent Venture Capital. Journal of Financial & Quantitative Analysis, 44(6), 1291-1321.