The Basics of Setting Up a Business

A business is basically an establishment in which people work as a unit. In such an establishment, individuals work either to create and market goods or services for others. Others also purchase the goods and/or services produced by the company. The company owner is usually the one who actually hires workers for such work.

Under a partnership agreement, a business can have either a general partnership or a sole proprietorship. A general partnership agreement is one in which both partners are equally responsible for the management of the partnership. A sole proprietorship, on the other hand, has only one owner and sole ownership of the business.

Each type of partnership has its own legal rights and responsibilities attached to it. When forming a business organization, owners should consult a qualified attorney in order to ensure that their partnership is legally established. If the business is established as a sole proprietorship, that owner is considered the sole owner. He or she then is responsible for all the decisions made by the partnership, as well as those of his or her employees. However, in a general partnership, the partners share in the legal rights and responsibilities of the partnership, so there is no one solely owning the business; instead, partners share in the profits of the organization.