Employee and ownership
A general partnership is a relationship in which all the partners contribute to the day-to-day management of a business. Here, every partner has the power or authority to make decisions concerning business and legally bind the company into contracts. All the responsibilities, distribution, and liabilities are equal among the partners unless stated otherwise. At the same time, a limited partnership is a relationship in which one or more partners are not involved in the day-to-day management of a business. A limited partner is also known as the silent partner who serves as the investor of the business, with the funds distributed as the extent of their liability. Here the partner does not have the power for decision making even when it comes to withdrawing the funds they have invested without the general partner’s decision. In a limited partnership, there is a general partner who mas business operations.
A sole proprietorship is where one owner operates a business while a corporation is a legal entity separated from the owner. A sole proprietorship does not involve filling of documents, and all the losses are taxed from that one person’s income. A sole proprietorship does not provide liability protection tor owners as they place their assets at risk. At the same time, a corporation requires the filing of documents where it will conduct the business. It is a legal entity separate from the owner who is the shareholders and does not operate the business in most cases; instead, they elect a bound of directors who elect corporation officers to operate the business. Corporate pays all the taxes and profits divided among the shareholders who later pay the personal income tax.
Employees receive instructions and work under oversight, while contractors are independent who work without oversight. Employees are taxed. Employees have to complete a form to be taxed while contractors are responsible for paying their tax. Employees work for a specific salary while contractors submit an invoice for their pay. Employees working hours are determined by the company that has employed then while the contractor determines their own time. For employees, jobs may comprise a wide variety, while for contractors, they do a specific job.
Wrongful termination happens when an employee has been dismissed or terminated without any case and an insufficient notice of compensation. Unfortunately, employees can be terminated for petty reasons, but they have to notice the termination period. At the same time, proper termination is when an employee has been terminated with enough case and has been given enough notice for termination.
Voluntary bankruptcy is initiated by the debtor who wishes to get relief. The debtor files for bankruptcy and then files the petition with the court. In comparison, involuntary bankruptcy starts with the creditors who file the petition for bankruptcy against a corporation or individual who owes them money. Here a single or more creditor can file the petition to the court seeking to announce the corporation of the individual bankruptcy.