Three (3) different major forms of private business ownership

So you are an Entrepreneur and you're thinking of starting your own business, you'll need to look at the different forms of ownership are there and work out which structure best suits your needs and business plan. Private property is a legal designation for the ownership of property by non-governmental legal entities.

Each of the three forms of private ownership - sole proprietorship, partnership, and corporation - has its own unique advantages and disadvantages.

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Below are the 3 forms of private business ownership

Sole proprietorships

Sole proprietorship is the original form of business ownership. It is also the simplest, because there is no legal distinction between the sole proprietor as an individual and as a business owner. As noted, a sole proprietorship is an organization owned and usually operated by a single individual. Its assets, earnings, and debts are those of the owner.

Sole proprietorships are still the most common form of private business ownership. Although they are used in a variety of industries, they are concentrated primarily among small businesses such as repair shops, small retail outlets, and service organizations.

Partnerships

A partnership is another form of a private business ownership. The Uniform Partnership Act, which regulates this form of business ownership, defines a partnership as associations of two or more persons who operate a business as co-owners by voluntary legal agreement. Partnerships have been a traditional form of ownership for professionals offering a service, such as doctors, lawyers, and dentists.

A general partnership is one in which all partners carry on the business as co-owners and all are liable for the business debts. Some states and countries also permit a limited partnership composed of one or more general partners and one or more limited partners. 

A limited partner is one whose liability is limited to the amount of capital contributed to the partnership, provided the person plays no active role in business. The sale of limited partnership shares is a common way of financing businesses today.

A joint venture, another type of partnership, involves two or more parties forming a temporary business for a specific undertaking - for example, a group of investors who import a shipment of high-quality wine from France and then resell it to wine dealers in the US. Joint ventures are often used in real estate investments.

Corporations

A corporation is a legal organization whose assets and liabilities are separate from those of its owner(s). They can be formed only with the approval of the appropriate government agency.  Corporate ownership is represented by shares of stock in the firm. 

Anyone who holds one or more shares of a corporation's stock is considered a part-owner of the business. Shares can usually be bought and sold readily on the open market.

Most corporations are small firms. Not all corporations are large-scale enterprises. The corporate form is used by many smaller companies.