What are the owners of small businesses?

The owners of small businesses are people who own small businesses. In the United States, a small company is often defined as a separately owned company that has less than 100 employees, but the exact definition differs according to the state. In Australia, a company with 19 or less employees can be considered a small business, while the European Union has defined small businesses like those with 250 or less employees. Owners of small enterprises can be experts with their own trade, such as accountants or lawyers, or they can own a gift shop, bakery, bed and breakfast, restaurant or other company. The owner of a small company could have either exclusive ownership, partnership, limited liability company (LLC) or corporation. For example, a freelance writer, who works alone for clients from his own house, can be considered the only owner. The only ownership does not have to formally register by the government. The individual is personally responsible for his business debt and shows a business earningsy or loss of tax returns. The partnership is the same as exclusive ownership in terms of liability and registration, only for one or more owners.

Limited liability company (LLC) offers small businesses a certain limit to their personal responsibility, so this reduces part of the risk of business ownership. However, LLC is not recommended for most small business owners due to effort and costs associated with the operation of these types of business structures. Corporations have no personal responsibility and are often trade structures used by larger companies. Companies will submit a completely separate tax return and the owner's liability is completely separated from the company's liability.

Some advantages for small -time owners, includingMe, are a great feeling of success plus a sense of independence at work because they are now bosses and chief creators of decisions. The disadvantages to be the owner of a small fIrmy includes time and risk factors. Since small businesses often do not have a lot of employees, especially at the beginning, the owners must spend long days handling many different parts of business. New businesses also have the risk of failure, especially in the first year, and owners of small businesses must carefully decide on planning and operating their companies.