Question

1. Explain the difference between an incorporated and non-incorporated company in the US and give examples of the latter

Answer 1

Incorporated and un-incorporated company.

Unincorporated business can be partnership, sole proprietorship or partnership,they are not legal entities . In these form of companies the owner does not have a separate identity with the company. The owners have full liability of all kinds of action happening in the business.

Incorporated company are corporations , in this form the owners have a separate legal identity, An important feature of both is limited liability, which means that the shareholders, directors, employees are not personally liable for the debts that the institution owes to the creditors. Owners assets are protected against the liabilities of the company. It creates a protective veil, where the shareholders are not affected by risks taken by the company for growth potential.

Bausch and Lomb is an incorporated company, American Express company Berkshire Hathway.

Example if unincorporated are sole proprietorship,partnership and small businesses.

For example, the bakers,freelance writers ,fitness instructors ,clubs ,charities are few other examples