What is an enterprise company?

• Sole proprietorship

• Partnership

• Private limited companies (Ltd.)

• Public limited companies (PLC)

Sole proprietorship. When you are the only member of your LLC, it is considered a single-member company and is taxed as a sole proprietorship. This can include all types of small businesses, such as painters, designers, decorators, or owners of one small retail unit. Many online businesses also fall into this category.

Partnership. Corporations and partnerships are both multi-member LLCs; however, their members are paid differently. If your LLC has more than one member, you can choose to be taxed as a partnership or corporation. Members of a partnership share ownership and decision-making in their enterprise company.

They also share any profits. In certain enterprise companies, individual partners may bring some sort of specific specialized knowledge or experience to the company, such as legal abilities.

Private limited companies. This kind of enterprise company has been legally incorporated and has its own legal identity. It will also have a set of stakeholders who own shares in the company.

These shareholders shoulder a limited amount of liability for the enterprise company in terms of company debts. The shareholders will also hire and appoint directors for the company, and the directors will oversee the operations of the company and make day-to-day decisions.

Public limited companies. This type of enterprise company allows its shares to be purchased by members of the public and is not exclusive to company stakeholders.

To accomplish this, the company must meet certain standards in terms of financial health, have a degree of transparency with their accounts, and other standards as well. Selling public shares can be quite beneficial for enterprise companies that are looking to expand.