Small businesses are corporations, partnerships, or sole proprietorships that have fewer registered employees and/or lower annual sales than a normal-sized corporation or business. In some cases, small companies may be one person operating from home. Other times, a small business may be a group of individuals or businesses working together. Many small companies are thought to be the same as small personal companies (PVCs), but they are not incorporated. Some examples of small businesses are restaurants, repair shops, computer companies, mom-and-pop stores, bookstores, shopping centers, bars, and other types of retail establishments.
There are several different types of small businesses. Real small businesses are usually one or two people who own them and operate them on a day-to-day basis. Examples include jewelers, car washes, bakeries, restaurants, taxi services, freelance writers, artisans, and charity organizations. There are also large chain restaurants, banks, hospitals, lending institutions, and other types of larger businesses in this category.
Formal small businesses are generally two or more employees who manage a business under the guidance of one or more management personnel. Examples include banks, law offices, hospitals, and real estate firms. Examples of these businesses, which may be comprised of hundreds or thousands of employees are oil refineries, airlines, and construction firms. A large corporation that has many employees is often called a corporation. A partnership consists of two people who work together to manage a business.
Start up small businesses usually require just one or two people to start and run the business. They can be comprised of one or two people who have previous experience in a related field, although most start-up businesses require at least one person with at least one year of work experience. Businesses for which there are fewer than nine employees are called family businesses.
The majority of real small businesses are either owned by the owners themselves or by others who control them through stock ownership, limited liability, or inheritance. Several other types of small businesses include franchises, partnerships, and intellectual property trusts. Franchise businesses give the owner a legal right to use a specific name, sell a specific product, and develop and sell various services related to that product throughout the United States. Partnerships give partners a legal right to use the assets and profits of the partnership to benefit their partners. Intellectual property trusts give individuals or entities the right to assign, sell, transfer, and protect their intangible assets such as patents, trademarks, and trade secrets.
There are several types of small business, that fall into the either a partnership corporation, sole proprietorship, or business opportunity classification. One example of a small business with all three classifications is a partnership where all of the partners participate in the business. In a sole proprietorship, one person owns the business while others are share owners. A business opportunity is any type of business that provides training or advice to help an individual achieve a specific goal. All three of these classifications result in a small business that is considered self-employed.
All business owners are required to meet certain size standards. The Small Business Administration’s size standards to determine which types of businesses can exist in a state. These standards are based on a variety of factors including the local population, cost of doing business, tax and investment structure, and access to local markets. Some small business may have multiple types of licenses in order to be able to legally do business in multiple areas. Other small businesses may only have a single license in order to do business in a particular area.
A good way to select a small business that meets your needs is to search online. You will find that there are numerous websites that review small businesses. You will also be able to compare different types of small businesses side-by-side. Whether you are interested in a sole proprietorship or a medium-sized businesses, you will be able to find exactly what you are looking for online.