Joint Stock Companies-
Darden Restaurants controls 5 different concepts, each of which stocks are available for purchase. Each concept is listed as a separate share on the Stock Exchange. On average, as of July 2011, each share for Olive Garden was bought at $52.69. Even if a buyer or stockholder bought a small percentage of stock in that particular company, he is still considered a shareholder. If 50 people bought 2% of the stocks for that particular restaurant and the restaurant went out of business, those 50 people would only be responsible for the 2% of stock they purchased.
Limited Liability Company-
I am an employee of Shine Salon. This salon happens to be a Limited Liability Company. An (LLC) is a type of legal insurance. If the salon was to go out of business, the stockholders or owner(s) would not be liable to pay off the company’s debt. This type of business is a great way to start your own capital with shareholders because of the trust they have in an LLC.
Lovoy-Hardin Law firm is a law firm based in Birmingham, AL. Three professionals have teamed their resources together to start this particular business. Each partner owns a specific amount of the business based on how much money they used and pooled together to form the business. The percentage of profit is also based on how much they put in initially. All percentages must be agreed upon. Out of the three owners each person owns the same amount of shares in the company. These shares can be sold and divided.
The House of Latte. This coffee house is owned solely by one person. There are no other partners and any financial risks and liabilities lay on one person’s shoulders. In this type of business, the sole owner may reap the benefits of the income and claim it on their tax return each year.