Business Forms

Starting a business requires the need to make various decisions that may be risky but beneficial to the business. Such decisions may involve the choice of location, the type of business entity among others. These questions become more complicated when the business is to be owned by two or more people like in our case. To ensure that our business grows, it is vital to choose the best form of ownership that is favorable for my friend and I. These forms will be partnership and corporation.

Since we are two, partnership will be one of the best approach. Partnership entails sharing of duties in the sense that none of us will be the manager since we all will have to play equal roles. For instance, one of us can be in charge of finances while the other one takes care of day to day operations like serving customers and making the food. General partnership in our case will be significant as all of us will be liable for the business in all aspects inclusive of debts. An advantage of employing a general partnership in our food truck business is that there is an equal sharing of knowledge and skills as well as management.

Corporation is another form of ownership that can best impact our business. For instance, corporation reduces personal liability and provides the chance for each of us to incorporate efforts equally. A food truck will imply selling in the open market. Through corporation, it is easy for the business to attract other talented people who can come in and work with us in boosting the business. The advantage of Private Corporation is that we as the stockholders can only lose up to the amount we invested as well as we can easily transfer ownership depending on one’s decisions.

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