For aspiring business owners who lack the time, vision, or resources to start from scratch, franchising is a viable alternative. Everyone is familiar with franchises—many industries such as fast food are almost wholly comprised of franchises. As appealing as it may seem, there are still risks to franchising for both the franchisor and franchisee. A franchise is a business model that involves one business owner (the franchisor) licensing trademarks and methods to an independent entrepreneur Read More
Hybrid Forms of Ownership
The concept of “limited liability” has given rise to hybrid forms of business ownership such as LLCs and LLPs. In this section you’ll learn what these forms are and the pros and cons of each. A limited liability company (LLC) is a hybrid business structure allowed by state statute. LLCs are attractive to small business owners because they provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Each state may use different Read More
Benefit Corporations
Over the past few decades, the boundaries between the public (government), private (business), and social (nonprofit) sectors have become blurred as many pioneering organizations merge social and environmental aims with business approaches. There are many expressions of this trend, including corporate social responsibility, microfinance, venture philanthropy, sustainable businesses, social enterprise, privatization, community development, and others. There are also new forms of corporate Read More