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The materials available at or within this website are for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem.
Who is the owner?
Ownership differs based on the type of business:
- Sole proprietorship – that sole person is the owner. No distinction between business owner and nosiness.
- Partnership – two or more people operating a business, a partnership is formed by default.
- Equal ownership is assumed unless you have a Partnership Agreement, in writing, stating otherwise.
- No distinction between business and owners (no liability protection).
- LLC – separate entity, business and individuals are separate and distinct.
- Owners = the members of the LLC.
- Ownership % must be set forth in an Operating Agreement (unless you are a solo member LLC).
- LLC’s can also have managers. Managers can be members/owners, or not. Management and decision making for the company is dictated by the OA.
- Corporation – separate entity, business and individuals are separate and distinct.
- Owners = shareholders.
- Shares must be issued. This indicates % ownership based on the number of shares authorized and how many you own as a shareholder.
- A shareholder agreement must be executed if there is more than one shareholder.
- Non-profit – no one owns it. Does not issue shares. Board of directors controls. Bylaws govern.
