Share This Article:

Economic Definition of legal types. Defined.

Offline Version: PDF

Term legal types Definition: The three primary types of legal firm organizations are: (1) proprietorship, (2) partnership, and (3) corporation. One primary difference between these three legal types are number of owners -- proprietorship has one, partnership has two or more (but usually a small number), and corporation can have anywhere from one or to millions. A second difference is the liability of the owners -- proprietorship and partnership owners have unlimited liability and corporation owners have limited liability. Three newer firm types include (1) limited partnership, (2) S corporation, and (3) limited liability company. Each of these three are hybrids, with characteristics of proprietorship, partnership, corporation.

 

« legal reserves | leisure »

Permalink: http://glossary.econguru.com/economic-term/legal+types

Alphabetical Reference to Over 2,000 Economic Terms