5 TYPES OF BUSINESS ENTREPRENEUR (LIMITED LIABILITY) BY DJOHAN DARMADY

Welcome to the Djohan Darmady Blog site which today I’m going to tell you that there are 5 types of business Entrepreneurs which all of the business people need to know before they start creating their own business. Since this is the first step in creating your own business basically you need to know this 5 types which there is Sole Proprietor, Partnership, Company, Franchise, Limited Liability.

In this blog will be explained about the last type of the business which it is called Limited Liability and it is a type of a liability which allows the entrepreneur too set all of their assets along with their finances to keep separated. Which means that all of the responsibility on the debts-up to the company and the investment will be held by the shareholders or the owner itself.

There will be advantages and disadvantages of using this types of business which it is:

Advantages:

  • Limited Liability – The financial security that comes with the business
  • Fully controlled by the owners or the shareholders
  • Separated entities- it is part of the natures of the business that limited liability company is a deemed to be a separate part of legal entities from its owner
  • Employees shareholders – in this part is where the employees are able to purchase the shares and become the shareholders of the companies. which it is also a good thing for the employees by providing a motivation instead of salaries.

Disadvantages

  • Restricted capital rising – Only For the private limited company which there is a restriction on raising the sales of the shares
  • The cost of setting this business is huge

The conclusion of the doing the Limited Liabilities is that it also allows you to limit their personal liabilities which if there is something goes wrong with the business itself.

Written by: Djohan Darmady

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5 TYPES OF BUSINESS ENTREPRENEUR (FRANCHISE) BY DJOHAN DARMADY

Welcome to the Djohan Darmady Blog site which today I’m going to tell you that there are 5 types of business Entrepreneurs which all of the business people need to know before they start creating their own business. Since this is the first step in creating your own business basically you need to know this 5 types which there is Sole Proprietor, Partnership, Company, Franchise, Limited Liability.

In this part will be explained about Franchise which it is a very simple method of business types by just expanding the business through their goods and services with the license relationship. By doing a Franchise business you will not have to worry a lot about the stuff along with the training since the company itself will provide the training for your employees and all you need to do is to make the business run well for example of the Franchise company: Mc Donald, Burger King, and Subway.

as for the list of the Advantages and the Disadvantages of doing this type of the business will be:

Advantages:

  • Franchise business have higher rates of success chance especially in a start-up business
  • easier to get finance in a franchise and cost lesser when you want to start a business franchise
  • You don’t need to have any kind of experience to create a franchise business since the company will prepare all the training for your staff along with equipment.

Disadvantages:

  • By doing a franchise which means entering into a mutual agreement with a franchisor
  • If you have done a bad performance in your franchise company it might also affect your reputation either
  • Buying a franchise company means that you’re also sharing the ongoing profit with your franchisor

As for the conclusion of the Franchise will be the easiest from all of the types of the business which you don’t need to get any experience and bought all the equipment. Basically, all you need to do is to pay the payment along with the mutual agreement with your own franchisor.

Written By: Djohan Darmady

5 TYPES OF BUSINESS ENTREPRENEUR (PARTNERSHIP) BY DJOHAN DARMADY

Welcome to the Djohan Darmady Blog site which today I’m going to tell you that there are 5 types of business Entrepreneurs which all of the business people need to know before they start creating their own business. Since this is the first step in creating your own business basically you need to know this 5 types which there is Sole Proprietor, Partnership, Company, Franchise, Limited Liability.

So in this section will be explained about Partnership which this is the second type of business and Partnership is a type of business which allows both of the owners of the company to combine together as a team which each of the owners will be contributing to their profits, properties, money, and along with their labour and skills. This type of business is mostly will be a good thing to do if you are looking for a type of business that is able to support by other business or your friend then Partnership will be a good thing for you for it.

there will be an advantage and disadvantages while you are using this kind of method of the business which the advantage will be:

  • The cost or amount of the establishing your own start-up business will be lowered/
  • The opportunity of your incomes of the business will be split between you and your partner itself
  • There is more capacity in borrowing
  • and lastly, there will be limited external regulations

As for the disadvantages:

  • each of the partners will have a problem with the unlimited liabilities through debts of their business
  • If the partnership has been split up all of the assets and profits itself will become split into 2 parts
  • If your partners are joining or leaving you, you’ll have to control all of the assets payment of the partnership and it is expensive

So as for the conclusion is that if you want to make your business into a partnership be sure to prepare a draft of a partnership agreement which you will need to decide on how this business going through and discuss it through your other partners until both of you come with a mutual agreement.

Written by: Djohan Darmady

5 TYPES OF BUSINESS ENTREPRENEUR (COMPANY) BY DJOHAN DARMADY

Welcome to the Djohan Darmady Blog site which today I’m going to tell you that there are 5 types of business Entrepreneurs which all of the business people need to know before they start creating their own business. Since this is the first step in creating your own business basically you need to know this 5 types which there is Sole Proprietor, Partnership, Company, Franchise, Limited Liability.

In this part will be explained by the third Type of business which it is Company and it is a legal entity structure of business which it is a form of a group or an association of a person unlike a sole proprietor and partnership structure. Which means that the Company have the same right as a natural person or can incur debt along with sue and to be sued by others. which the good thing is that the owner’s of the company are able to limit their personal liabilities itself and generally not liable to any company debts.

As for the advantages and the disadvantages of starting a company will be

ADVANTAGES

  • Liabilities of the shareholders itself are limited
  • The tax rates can be favorable
  • as an owner of the company you have access to a wider capital along with the skills base
  • It is much easier to transfer the ownership of the company to someone or one of the owner’s family member can be employed directly by the company

Disadvantages

  • To create a company will be costly huge especially in maintaining the establishment of the company itself.
  • If the personal directories failed to meet its own criteria of the legal obligations then, they will be held the personal liability for the company debts

As for the conclusion is that building types of business like Company can deal an early huge risk but it will be worthed when your Company is successful.

written by: Djohan Darmady

5 TYPES OF BUSINESS ENTREPRENEUR (SOLE PROPRIETOR) BY DJOHAN DARMADY

Welcome to the Djohan Darmady Blog site which today I’m going to tell you that there are 5 types of business Entrepreneurs which all of the business people need to know before they start creating their own business. Since this is the first step in creating your own business basically you need to know this 5 types which there is Sole Proprietor, Partnership, Company, Franchise, Limited Liability.

So in this section will be explained by the first type of business which it is called SOLE PROPRIETOR which it is a type of business that has been run through by only a person or an individual  Since this type of business is not a legal form type of an entity and all of the responses will be run through by one person only or the creator of the business itself. Basically this type of business being used in when you want to start a new business which it is great to start for you to do a business that you want as an entrepreneur but there will be a lot risk since this type of business mostly uses on a start-up business.

here is the list of advantages and disadvantages of doing a Sole Proprietor as a type of your business

ADVANTAGES

  • As a Sole Proprietor, it is much easier and not as expensive as you think to start and create this business which you can start by establishing directly.
  • As a Sole Proprietor, you don’t have to pay tax
  • Lastly, there will be few business forms will be required

Disadvantages

  • All of the debts lose, and liability of the business will be held the Sole Proprietors itself So basically All of the responsibility will be held by Only the Sole Proprietors its selves.
  • Sole Proprietors can’t sell any of their interest in their business.
  • Most of the Sole Proprietors won’t survive long enough.

So as for the conclusion is that Sole Proprietors will be a good business if you know have a lots amount profit to invest your own business which keeps that in mind that there will be that all of the responsibilities will be held by only the owners itself.

written by: Djohan Darmady