Types Of Business Entity
A business entity is a commercial, corporate and/or other institution that is formed and administered as per commercial law in order to engage in business activities, usually the sale of a product or a service. There are many types of business entities defined in the legal systems of various countries. These include corporations, cooperatives, partnerships, sole traders, limited liability company and other specifically labelled types of entities. Some of these types are listed below, by country. For guidance, approximate equivalents in the company law of English-speaking countries are given in most cases, e.g.
- ≈ public limited company (UK)
- ≈ Ltd. (UK)
- ≈ limited partnership, etc.
However, the regulations governing particular types of entity, even those described as roughly equivalent, differ from jurisdiction to jurisdiction.
When creating or restructuring a business, the legal responsibilities will depend on the type of business entity chosen.
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