Business organization is the single-most important choice people make to start c
Business organization is the single-most important choice people make to start companies. Multiple factors decide the type of the company being formed and worked for. Aligning people goals with the business organization that they want to work for is important step to understand the pros and cons and better future career. Companies are formed based on four factors how the company is taxed, legal liability, cost of formation, and operational costs. Therefore, there are three types of business organization in the construction industry one may end up working for. These business companies are sole proprietorship, partnership, and corporation. Some construction companies offer partnerships and other offer share in the company, while others offer salary with health benefits (Alshareef et al., 2020). It is important for individuals who are starting their careers to understand the structure, policy, and standards of the potential employee to be able to negotiate their benefits and future careers (Alshareef et al., 2020).
Sole proprietorship: a sole proprietorship is a business form that is owned and usually operated by one individual. It is different from other forms of business organizations in that the business and the business owner have the same legal entity. Examples of sole proprietorship are grocer, dentist, and medical doctor. While starting a business, it is usually unnecessary for a sole proprietorship to be resisted or incorporated. The business should be either small or medium scale to be considered a sole proprietorship. The process of operating the business rotates around the business owner alone in that costs incurred are met by him/her and the profits gained and enjoyed by him/her. Some of the pros are the capital on the investments are to the minimal and fairly easy to establish. The total capital depends on the business owner and the willingness to invest. Profits are enjoyed by the business owner alone, which makes the owner the sole control over the business. The owner in this type of business manages all the assets, capital, and liability of the business. No stakeholder is involved or required to make transactions unless the owner does it on behalf of the business owner. Since the business owner is eligible to calculate the amount of taxes that are paid to the government, filing for tax income is fairly easy. Some of the cons in this type of business are the owner has the sole control, power, and decision over the business, which puts the owner under higher risk. Protection insurance sole owners business may buy are more expensive and could be the business at risk. A sole proprietorship also faces the burden of Payment for federal and state income taxes that requires more income. Moreover, in case the sole proprietor passes away, the business also comes to an end (Murray, 2020).
Partnership: partnership is business organization that is owned by two or more individuals (Kohler, 201). This type of business is involved a minimum of two p