Small Businesses: Made by 6 MYP.B Class Students Karolis Giržadas and Eironas Mėšletys

Small
businesses
Made by 6 MYP.B class
students Karolis Giržadas and
Eironas Mėšletys
What is a small
business?
Politicians often talk about "small
businesses." But how small is a small
business? Fifty employees? One hundred?
Two hundred?
Actually, it’s often much more than that.
The Small Business
Administration’s Office of
Advocacy defines a small business as one
with fewer than 500 employees. And that’s
the standard politicians often use.(Lori
Robertson,August 25, 2010)
Types of small businesses
• Sole proprietorship. A small business with sole proprietorship is owned by a single
individual who is liable for all business transactions, debts and lawsuits.
• General partnership.
• Limited partnership (LP) ..
• Limited liability company (LLC) ..
• Non-profit.
• C corporation.
• S corporation.
What is an LLC?
An LLC is a Limited Liability Company.
So what is a Limited Liability Company? To answer that question, we must go back in time.
Five hundred years ago, the hottest business of the day was international shipping. If you could
afford to build a ship and hire a crew, you could send that ship to India. That ship could return to
you with spices that were worth a fortune. I could change your life. Your ship and crew could also
sink or get attacked by pirates.
As a way to reduce risk, merchants started forming companies. A company is a legal entity and
functions as an artificial person. In the eyes of the law, a company can own property, sue, and be
sued. So instead of ten merchants each owning a single ship and assuming all the risk as
individuals, they would form a company. Each merchant owned 10% of the company, and that
company had ten ships. While some of the ships might sink, enough of them would return to keep
the operation profitable. (Thomas Umsttd, July 14, 2021)
What is a
general Partnership?
A general partnership is a business arrangement by which two or more individuals agree to share
responsibilities, assets, profits, and financial and legal liabilities of a jointly-owned business.
In a general partnership, partners agree to be personally responsible for potentially unlimited

liability. Liabilities are not capped as they would be in, say, a partnership formed as a limited
liability partnership or a limited liability company (LLC). Partners are responsible for the debts,
and the seizure of an owner's assets is a possibility. Furthermore, any partner may be sued for the
business's debts.(Andrew Bloomeenthal, December 28, 2022)
Limited Partneship
A partnership registered in accordance with the Limited Partnerships Act

1907. An English limited partnership must be formed between two or
more persons and must carry on a business in common with a view of
profit. Unlike a general partnership, a limited partnership has two
categories of partner: one or more general partners who manage the
business of the partnership and one or more limited partners who do not
participate in the management of the partnership and who have limited
liability.(2023, Thomas Reuters)
WHAT IS AN NON-
PROFIT
A nonprofit organization (NPO) is one that is not driven by profit but by

dedication to a given cause that is the target of all income beyond what it takes
to run the organization. Because of this, NPOs receive tax-exempt status from
the federal government, meaning they don't have to pay income tax. Nonprofit
organizations are often used for trusts, cooperatives, advocacy, charity,
environmental and religious groups. Many, but not all, NPOs have paid staff in
management positions; almost all use volunteers. Unlike for-profit businesses,
NPOs have no owners and any surplus profits after operating expenses are
used to further its goals instead of being distributed between members or
employees of the organization.( Katie Terrell Hanna, no date included)
What Is a C Corporation?
A C corporation (or C-corp) is a legal structure for a corporation in which the

owners, or shareholders, are taxed separately from the entity. C corporations, the
most prevalent of corporations, are also subject to corporate income taxation.
The taxing of profits from the business is at both corporate and personal levels,
creating a double taxation situation.(Andrew Ancheta July 22, 2022)
What Is an S Corporation?
• An S corp or S corporation is a business structure that is permitted under

the tax code to pass its taxable income, credits, deductions, and losses
directly to its shareholders. That gives it certain advantages over the
more common C corp, The S corp is available only to small businesses
with 100 or fewer shareholders, and is an alternative to the limited
liability company (LLC)
Both S corps and LLCs are known as "pass-through entities" because
they pay no corporate taxes but instead pay their shareholders, who are
responsible for the taxes due.(Julia Kagan September,2022)
How Much Money Do Small
Business Make in Statistic?
8 Small Business Revenue Statistics
1.Small businesses with no employees have an average annual revenue of $46,978.
2.The average small business owner makes $71,813 a year.
3.86.3% of small business owners make less than $100,000 a year in income.
4.Small business owners who are self-employed by their own incorporated businesses made a median income
of $50,347 in 2016.
5.In 2016, the number of nonemployer firms making $1 million to $2.49 million in revenue increased from
35,584 to 36,161—a 1.6% increase.
6.On average, businesses with less than $5 million in annual revenue saw a 7.8% jump in annual sales in 2015.
7. In 2007, women small business owners averaged $130,000 in revenue, while male small business owners
averaged more than four times that with $570,000.
8. In one study, 82% of businesses that failed cited a lack of cash flow as a factor in their demise.
Sources
Https://www.fundera.com/resources/small-business-revenue-statistics
https://www.investopedia.com/
Https://www.authormedia.com/
https://uk.practicallaw.thomsonreuters.com/
www.factcheck.org
Thanks For Your Attention!

Small Businesses: Made by 6 MYP.B Class Students Karolis Giržadas and Eironas Mėšletys

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Small Businesses: Made by 6 MYP.B Class Students Karolis Giržadas and Eironas Mėšletys

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Small

In a general partnership, partners agree to be personally responsible for potentially unlimited

A partnership registered in accordance with the Limited Partnerships Act

A nonprofit organization (NPO) is one that is not driven by profit but by

A C corporation (or C-corp) is a legal structure for a corporation in which the

• An S corp or S corporation is a business structure that is permitted under

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