...needs. 1) Sole Proprietorship The wonderful thing about a sole proprietorship is that they are simple to form because you are the one and only owner of the business. There is no legal difference between the owner and the business. You are ultimately in charge of making all decisions and handling all finances. • Liability: In a sole proprietorship, the owner, is the same as the business. The owner is held responsible for all of the liability as a business owner and personally. Any personal or business assets as well as future business earnings can all be a part of the risk of being a sole proprietor. • Income Taxes: When it comes to income taxes, all earnings of the business are reported under the sole proprietor as personal income, which tends to suffer the maximum taxation amount. The business is not taxed separately from the individual since they are essentially the same entity. • Longevity/Continuity: In a sole proprietorship, the business would cease to exist without the original owner. The business can also cease to exist by selling off or donating any of the business assets. • Control: The owner has complete control of the business. They are ultimately responsible for every single decision, finance and detail of the business. • Profit Retention: Any profit or loss of the company belongs solely to the owner. The owner can keep any profit from the business as their own and spend it accordingly. • Location: Sole proprietorships can be operated...
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...own a business it would be a sole proprietorship type of business. However, at this point in my life I do not see myself as a business owner. I am not the adventurist type, nor am I a risk taker. I do not trust my fellow man enough to partner up and I have an overwhelming fear of failing. If I were younger and could of over-come these issues, I would have owned and operated a small accounting service. I would start out as a sole proprietorship type of business and see where the adventure took me as a business owner. Advantages of a Sole Proprietorship •Owners can establish a sole proprietorship instantly, easily and inexpensively. •Sole proprietorships carry little, if any, ongoing formalities. •A sole proprietor need not pay unemployment tax on himself or herself (although he or she must pay unemployment tax on employees). •Owners may freely mix business or personal assets. Disadvantages of a Sole Proprietorship •Owners are subject to unlimited personal liability for the debts, losses and liabilities of the business. •Owners cannot raise capital by selling an interest in the business. •Sole proprietorships rarely survive the death or incapacity of their owners and so do not retain value. The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. A sole proprietorship can operate under the name of its...
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...BUSN105: Scenario You are an inventor who enjoys working around the home, cleaning, cooking, and doing minor home repairs and remodeling. You have little financial skills and no management skills. You have a great idea for a new kind of home appliance that meets everyday consumer needs. Your net worth is not very high so you have no idea if you’ll be able to “fund” this start-up. You know that currently there are similar products that meet the consumers’ needs, but those products are inherently dangerous. You know nothing about manufacturing other than that it costs lots of money to set up a plant. You are convinced that this new technology idea would be applicable in a wide range of other products. Your spouse, knowing how much time this venture will take away from family time, has asked you for an example of what you mean to make sure your idea isn’t some harebrained scheme. You mention the following as two similar ideas that were developed for one application but proved to have VERY widespread applications: a. The “clicker” was initially invented for use with TV’s, but now has widespread applications for a host of electronic applications, just like your technology could potentially do. b. The 3-prong power cord for electrical appliances was invented for higher quality appliances. Lower quality appliances have a 2-prong cord, which is a safety issue. Better quality power cords have the 3 “ground” wire, so now it has widespread application, just like...
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...Sole Proprietor | • owner makes 100% of decisions • simplest to set up • least costly to operate • simple tax return | • personally liable for any debt/law suit • limited to personal resources if seeking to expand • limited by skills sets of owner | • a small dry cleaner • small restaurant | If you chose this option, it could limit the amount of money available to the business as it would all come from you and your spouse. | | | | | | | | | | | | | | | | Partnership | • pools financial resources of all partners • pools skill sets of all partners • need tax return of partnership that flows into personal return | • requires legal "partnership agreement" • partners may not agree on decisions • still personally liable | • a business requiring particular expertise; no one person has that so groups of people each with special skill get together • attorneys, accountants, and physician offices are examples | If you chose this option, you and your partners would have to agree on MANY things; in particular the goals of the company, how profits should be split, liabilities, etc. | | | | | | | | | | | | | | | | | | | | | | | | | | Corporation | • no liability issues to stockholders • unlimited ability to raise funds (just sell more stock) • greater ability to attract needed talent | • managers have to answer to multiple owners (stockholders) • many more financial reporting requirements (SEC, IRS, etc.) • double taxation...
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...Nontax Factors of a Sole Proprietorship Nontax Factors of a Sole Proprietorship Sole proprietors are individuals engaged in a business without the benefit of associates or a corporate charter. Sole proprietorships have many strengths and weaknesses. One of the strengths for the widespread use of the sole proprietorship generally relate to the central theme of the business form’s simplicity: the sole proprietorship has no formal legal requirements for establishment. To establish a sole proprietorship, all an individual is required to do is to start conducting a business for profit. There are no annual fees that have to be paid to form or maintain the sole proprietorship. Because no separate tax return is required, the accounting procedures for the business may be relatively simple. The income from the business is calculated and reported on Schedule C, Form 1040. The management structure also is straightforward. The owner of the sole proprietorship is responsible for operating the business on a day-to-day basis. Such vesting of all management authority in the owner allows for great flexibility. The sole proprietorship has no identity apart from the owner. The owner holds title to property used in the business. In addition, the sole proprietorship sues and gets sued in the owner’s name. Thus, the owner’s business operations have little or no distinction from personal financial affairs. It does not matter whether the sole proprietor deposits the proceeds of a sale...
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...As stated, Mr Ravi was the sole proprietor in a business selling Turkish carpets that the sole proprietor, also known as “proprietorship”, is an unincorporated business with one owner who pays personal income tax on profits from the business. With little government regulation, they are the simplest business to set up or take apart, making them popular among individual self-contractors or business owners. In other words, Mr Ravi is personally owes every penny that his business can't pay. So if his business doesn't have enough cash or assets to pay its debts, creditors can, and sometimes will, take his personal assets -- or at least the assets that aren't protected by state exemption laws. However, Mr Ravi later incorporated the business and set up a company, Ravi Carpet Sdn Bhd in April 2011. When a company is incorporated it is vested with legal personality. This means that in the eyes of the law, a company is treated as a legal person. When a company becomes incorporated under the Companies Act 1965, the following occurs: - The company is a body corporate with the powers of an incorporated company; - It may sue and be sued in its own name; - It has perpetual succession; - It may own land; and - The liability of its members may be limited. The Company Act 1965 does not completely define the word ‘company’. The best definitions come from case law. For example, Buckley J in Re Stanley [1960] stated: “… the word company has no strictly technical meaning. It involves two...
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...Carroll L. Banks English 1010 Christina Norman June 27, 2013 Learning to Swim Learning to swim is something every person needs to know. It can be challenging and frightening. Some are afraid of getting in the water. Swimming has many benefits: fun in the water, boating, fishing, and an excellent exercise routine. Swimming is one of the best work-out for the entire body and uses all of the major muscle groups. It improves your cardiovascular and circulatory systems. Physical Therapists use it as an exercise for knee patients. Learning to float is essential to controlling the body motions. Children master this technique easier than adults because of the fear factor. Getting comfortable in the water is the first step. Start out in the shallow end of the pool. Using slight movements, such as holding onto the edge while walking around, lowering your body into the water, and learning to hold your breath above and below the water. Doing these exercises for 3 hours (two one and a half hour sessions) will make trainees comfortable and eliminate stressful fear. The dead man’s float is easier for beginners. Relax your body; stand in waist deep water with your stomach pulled in. Stretch or elongate the neck and tuck your chin back. Take a deep breath; hold it in and lean forward, putting your face in the water while you extend your arms forward. Allow your legs to float to the surface one at a time while looking at the bottom of the pool. Stay relaxed. Being tense will not keep...
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...A sole proprietorship also known as a sole trader, or simply proprietorship is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business. All profits and all losses accrue to the owner (subject to taxation specific to the business). All assets of the business are owned by the proprietor and all debts of the business are the proprietors'. This means that the owner has no lesser liability than if he was acting as individual instead of a business. It is a "sole" proprietorship in contrast with partnerships. A sole proprietor may do business with a trade name other than his or her legal name. Sometimes a sole proprietor is required to file a doing business as statement with a local government even if it is the same as his actual name[1] for certain types of businesses or as a requirement to open a business banking account. Advantages The many advantages of Corporations are described in that article; chiefly they are the ability to raise capital either publicly and privately, to limit the personal liability of the officers and managers, and to limit risk to investors. The disadvantages of corporations are advantages to proprietorship: reduced cost of doing business, as corporations must do many things like purchasing, accounting, and legal actions in more expensive ways and are subject to special taxes and fees; easier and cheaper to start and discontinue without required fees and legal expenses;...
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...LIT1 Task 310.1.2-01-06 Part A: 1. Sole Proprietorship: a. Liability: The owner of sole proprietorship is responsible for all bills that involve the business from supplies to employees. Owner personal’s assets are attainable by creditors in case the sole proprietorship is unable to cover for the bills. b. Income Taxes: The owner would be considers as ordinary person income in which they are tax heavily. Sole proprietorship is unable to take advantage of the lower income tax rate. c. Longevity/Continuity: It is impossible for sole proprietorship to continue because once sole proprietorship is no longer alive the business will no longer exist. d. Control: The sole proprietorship is control of the business. For example the sole proprietorship set his/her schedule (opening and closing) of business. e. Profit Retention: Sole proprietorship retains on the profit from the business. He/She is able to do whatever with the profits. f. Location: The sole proprietorship chooses where the business will be run at. g. Convenience/Burden: The convenience of being a sole proprietorship is being able to control business. The burden of being a sole proprietorship is being responsible for all aspect of the business from liability to income taxes. 2. General partnership: h. Liability: General partnership is still responsible for all debts and obligations. Evan if one of the partner has misuse the...
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...Table of Content No. | Topic | Page Number | 1 | Planning | 2,3,4 | 2 | Organizing | 5 | 3 | Leading | 6 | 4 | controlling | 7 | 5 | Conclusion | 8 | Chapter One: Planning Gadget Importer Express: It is a sole proprietorship organization. There is only one owner of this organization. All the decision will be taken by the owner. He will take all the risk and he will enjoy the profit. Objective: The primary objective of Gadget Importer Express is to earn profit by delivering superior product to its customers. Customer will order the product from different e-commerce site like “Amazon”, “E-Bay”, and “Alibaba” etc. For them will will import the product and deliver it to them. We will take a commission. Mission: World famous ecommerce site are not operating in Bangladesh. Our mission is to take order from young people who want to buy nice and beautiful gadget from “Amazon”, “E-Bay”, “Alibaba” etc. sites. Vision: We want to be a large importer in future. Then we will import much more things from abroad. Office: Primarily I will hire an office in Nikunja-2. All the activities of the organization will be operated from here. Reason behind choosing this business: Now a day’s most of the young adults use internet. By using internet they can know about all the products available around the world. So a new types of demand is being created. Often they want to buy goods from abroad. But there is no specific means to satisfy this needs. Although there are some individuals...
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...I. Panimula Ang pamanahon papel n ito ay magsasaad ng mga kaalaman tungkol sa solong pag nenegosyo,layunin nitong mapalawak ang kaisipan tungkol sa lahat ng bagay at salitang nag uugnay sa solong pagnenegosyo. II. Nilalaman •depinisyon ng solong pag nenegosyo •kalamangan ng solong pagnenegosyo •kasiraan ng solong pag nenegosyo III. Layunin Mga katanungan na nilalayon n masagot 1. Ano ang solong pagnenegosyo? 2. Ano- ano ang mga kalamangan ng solong pag nenegosyo? 3. Ano-ano ang mga kasiraan ng solong pag nenegosyo? 4. Kumpara sa ibang uri ng pagnenegosyo, ano-ano ang kalamangan ng solong pagnenegosyo? 5. Kumpara sa ibang uri ng pag nenegosyo, ano-ano ang mga kakulangan ng solong pagnenegosyo? IV. Kahalagahan ng pag-aaral Mahalagang pag aralang ang solong panenegosyo lalong lalo ng sa mga estudyanteng may kursong nauugnay sa negosyo. Sapagkat dito nila mapagaaralan ng mga magandang at hindi magandang dulot nito. Malalaman din nila ang depinisyon ng negosyong pinapatakbo lamang ng iisang tao at ang kalamangan nito sa iba pang uri ng pagnenegosyo. V. Kahulugan ng mga katawagan Solong pag nenegosyo – Ang solong pag nenegosyo ay isang uri ng pagpapatakbo ng isang negosyo na ang nag mamayari at nag papatakbo nito ay iisang tao lamang. Mga kalamangan ng solong pag nenegosyo 1. Halaga ng pag bubuo - kumpara sa ibang uri ng pag nenegosyo, ang solong pag nenegosyo ay ang pinaka madali at hindi magastos buuin. Ang mga kailangan lamang ay ang mga sumusunod: ...
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...structure you select for your company. Not only will this decision have an impact on how much you pay in taxes, but it will affect the amount of paperwork your business is required to do, the personal liability you face and your ability to raise money. The most common forms of business are sole proprietorship, partnership, corporation and S corporation. A more recent development to these forms of business is the limited liability company (LLC) and the limited liability partnership (LLP). Because each business form comes with different tax consequences, you will want to make your selection wisely and choose the structure that most closely matches your business's needs. If you decide to start your business as a sole proprietorship but later decide to take on partners, you can reorganize as a partnership or other entity. If you do this, be sure you notify the IRS as well as your state tax agency. Sole Proprietorship The simplest structure is the sole proprietorship, which usually involves just one individual who owns and operates the enterprise. If you intend to work alone, this structure may be the way to go. Advertisement The tax aspects of a sole proprietorship are appealing because the expenses and your income from the business are included on your personal income tax return, Form 1040. Your profits and losses are recorded on a form called Schedule C, which is filed with your 1040. The "bottom-line amount" from Schedule C is then transferred to your...
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...Proprietorships, partnerships and cooperation’s Proprietorships, partner ships and cooperation these are three types of businesses operations a entrepreneur can choose from or in other words can be a part of one. Starting with proprietorship or sole proprietorship is a business operation in which one person or one entrepreneur owns or holds the business. It is one of the simple business operations because it gives full control of the business and it is simple to get started with and set up. This is perfect for small business that is just starting up, small stores like retail stores, hardware shop, retail shops , barber shops, repair shops or other small business. You own the business and you’re your own boss. Moving on to partnerships these maybe the same business mentioned above or any other business but this time you are with a partner this is not all bad, partners can bring better change, they may have better skills and quality to make a business grow and plus it also helps to share the cost but you will also have to share the profits but all that burden on one entrepreneur can be to much and he or she may need help. The last business organization is cooperation this is when stocks get involved the owner ship of the company is in stocks so if you are a investor in a cooperation the company will give you shares of stocks and these are what the company is worth this is also proof that you have some owner ship of the company. The easy things about stock are...
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...businesses; sold proprietorship, partnership and corporation (Griffin 2005). Before deciding which the best one for the business is, the owner needs to know what each one is and how it operates. A sole proprietorship is a business that is owned and operated by only one person. Anyone can open up a business as a sole proprietor as long as they have the means and know how to do so. A lot of the “mom and pop” stores throughout the United States are classified as a sole proprietorship. They tend to be family owned and are very personable with their clients or customers which appeals to consumers. A partnership is when two or more people get together and decide to start a business. They decided how it will operate and how the profits will be shared. Most partnership businesses have people who are skilled in different areas which help the business become more successful. A corporation is when a group of stockholders have ownership of the business. A corporation can be expanded very easily throughout the United Stated. They have more funding available to them then any other kind of business form. The banks are more willing to lend money to corporations mainly because of the type of business it is classified as. When comparing sole proprietorship, partnership and corporations. Sole proprietorship is the easiest yet the most risky to start. There is no one else but the owner who funds the business and makes all the decisions. Starting a sole proprietorship is very...
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...There are three legal forms of business: Sole Proprietorship, Partnership, and Corporation. The inventor scenario sounds like the business would start as a Sole Proprietorship since there are limited finances and the inventor’s net worth is low. However, with the new technology being introduced this business could quickly grow and eventually turn into a Partnership or possibly Corporation. A Sole Proprietorship is the easiest business to start with little overhead cost. All decisions are made by the proprietor, so no worries with disagreements since the proprietor is the boss and getting started doe not cost a lot. The downfall to being a Sole Proprietor is you are an extension of your business so if things start to fall apart your personal assets can be seized. The proprietor has to make sure they have taken all the necessary steps in education and training to make sure the business doesn’t look weak and not well managed. A Partnership is a great way to start a business with a friend or family member and luckily there is no set limit on the amount of partners one business can have so a whole class could start an amazing business. The important thing to remember about a partnership is that everyone, no matter the number is equally responsible for the debt created to run the business. Very different from the Sole Proprietorship where its one for all and the Partnership is all for one. The disadvantages of a Partnership include possibly not being able to mutually agree,...
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