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MOST POPULAR TYPES OF BUSINESS ENTITIES IN THE USA
Sole Proprietor
Most businesses in the US are sole proprietorships - that is, they are owned and operated by a single person. In a sole proprietorship, the owner is entirely responsible for the business\'s success or failure. He or she collects any profits, but if the venture loses money and the business cannot cover the loss, the owner is responsible for paying the bills - even if doing so depletes his or her personal assets.
Sole proprietorships have certain advantages over other forms of business organization. They suit the temperament of people who like to exercise initiative and be their own bosses. They are flexible, since owners can make decisions quickly without having to consult others. By law, individual proprietors pay fewer taxes than corporations. And customers often are attracted to sole proprietorships, believing an individual who is accountable will do a good job.
This form of business organization has some disadvantages, however. A sole proprietorship legally ends when an owner dies or becomes incapacitated, although someone may inherit the assets and continue to operate the business. Also, since sole proprietorships generally are dependent on the amount of money their owners can save or borrow, they usually lack the resources to develop into large-scale enterprises.
Business Partnership
One way to start or expand a venture is to create a partnership with two or more co-owners. Partnerships enable entrepreneurs to pool their talents; one partner may be qualified in production, while another may excel at marketing, for instance. Partnerships are exempt from most reporting requirements the government imposes on corporations, and they are taxed favorably compared with corporations. Partners pay taxes on their personal share of earnings, but their businesses are not taxed.
States regulate the rights and duties of partnerships. Co-owners generally sign legal agreements specifying each partner\'s duties. Partnership agreements also may provide for \"silent partners,\" who invest money in a business but do not take part in its management. A major disadvantage of partnerships is that each member is liable for all of a partnership\'s debts, and the action of any partner legally binds all the others. If one partner squanders money from the business, for instance, the others must share in paying the debt. Another major disadvantage can arise if partners have serious and constant disagreements.
Corporation
A corporation is an entity that is separate from its owners, so that regardless of what happens to shareholders, the corporation continues until it is legally dissolved. The owner(s) of a corporation are known as shareholders. The shareholders elect directors to set the policies of the corporation and represent their interests. The directors appoint the officers of the corporation to manage day to day operations. Corporations are legally required to follow more formalities than any of the other entities, including annual meetings of the shareholders and directors, as well as board approval of most significant acts by the corporation.
There are two main types of for-profit corporations, known as a C corporation and an S corporation. While most corporations are set up as C corporations, some elect to function instead as an S corporation in order to avoid double taxation.
In addition to these two types of for-profit corporations there are also nonprofit corporations, which are often used by charities. Finally, in limited circumstances, a corporation may be set up as a professional corporation, where the business is owned and operated by certain licensed professionals.
LLC
A limited liability company (LLC) is a form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners.
It is often more flexible than a corporation and it is well-suited for companies with a single owner.

Ответьте письменно на вопросы к тексту:
1. What are the main types of businesses in the USA?
2. What are the advantages of sole proprietorships? What disadvantages do they have?
3. Partnership involves collaboration between two or more parties. When do problems sometimes arise?
4. How is C corporation different from S corporation?
5. Who is a corporation run by?
6. A limited liability company is new type of business in the USA, but it is very popular.

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1) The main types of businesses in the USA are sole proprietor, business partnership, corporation and LLC.2) Sole proprietorships have certain advantages over other forms of business organization. They are flexible, since owners can make decisions quickly without having to consult others. By law, individual proprietors pay fewer taxes than corporations. And customers often are more attracted to sole proprietorships. This form of business organization has some disadvantages, however. A sole proprietorship legally ends when an owner dies or becomes incapacitated. Also, since sole proprietorships generally are dependent on the amount of money their owners can save or borrow, they usually lack the resources to develop into large-scale enterprises.3) The problem is that each member of partnership is liable for all of a partnership\'s debts, and the action of any partner legally binds all the others. If one partner squanders money from the business, for instance, the others must share in paying the debt. Another major disadvantage can arise if partners have serious and constant disagreements.4) There are two main types of for-profit corporations, known as a C corporation and an S corporation. While most corporations are set up as C corporations, some elect to function instead as an S corporation in order to avoid double taxation.5) The corporation is ruled by shareholders.6) A limited liability company is new type of business in the USA, but it is very popular. It is often more flexible than a corporation and it is well-suited for companies with a single owner.
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