In terms of the level of profit distribution, domestic enterprises (partnerships or production cooperatives) have significant differences. To choose the right organizational form for a business, you need to know the advantages and disadvantages of each of them.
The main and most significant distinguishing features of a general partnership and a production cooperative are the form of ownership and responsibility. Moreover, the responsibility for the affairs of the enterprise is tough, financial is provided by the property of the co-owners of the company themselves.
The distribution of profits in these two categories is also different. In the first case, the profit is distributed based on personal participation in the work of the enterprise. That is, the co-owner, in order to receive his share of the profit, is obliged to fulfill a number of his own obligations to the enterprise. And in the second case, the enterprise is commercial, with a standard distribution of profits established by the law of the Russian Federation.
Full partnership
A general partnership conducts its main and secondary activities from the moment of its creation on the basis of a standard constituent agreement, which is approved and signed simultaneously by all participants in the partnership. Management is carried out by general agreement of all participants at the meeting by open voting. Each of the founders has only one vote at their disposal.
Profits and losses are redistributed among its participants in direct proportion to their shares in the total capital. Moreover, the personal contribution of each to the development of the company is also assessed. If one of the participants is not able to physically perform a number of production works assigned to him, he can compensate this financially. Thus, each of the members of the partnership is responsible for the work of the entire enterprise with personal finances. And losses from improper management are reimbursed by all members, and not only by those who exercised this management.
Production cooperative
Production cooperatives exist from the moment of their creation and throughout their existence for joint production, trade, and the provision of any kind of services. A synonym for this concept is the more familiar definition of artel, which has long been used in legislation.
The constituent document of the artel is the standard charter of the cooperative, approved by the full meeting of all its active members. The number of its members cannot be, according to the legislation, less than five adults. The property in direct ownership is evenly divided into shares of all its members. The profit of such an artel is distributed among its members in strict accordance with their individually personal labor participation in the process of the cooperative's existence for the reporting period.
