Starting and Naming a Business

Betty, a Christian individual, is considering the option to open a Christian coffeehouse. Her husband will help fund the business, however; he has no desire to participate in the running of the business. Betty’s sister, who is also Christian would like to have a part in the business, however; she and her husband do not see eye to eye on this matter and wants her to have no part of it. Erma, Betty’s non-Christian neighbor is also interested in helping with the business and feels that the “Christian thing” is the way to go. Betty has decisions to make as to whom will be involved in this venture with her, how much control will placed to whom and how she will go about starting the business. She will have to weigh her pros and cons for the types of business forms available to her to determine which one is the best fit for her. She will also need to determine the amount of the contribution her husband is willing to make as this will help her make a determination as to which business form may suit her needs. A sole proprietorship, a partnership, a limited liability corporation and a franchise are just a few of the types of business organizations available to research prior to opening a new business. Betty must carefully evaluate each of these options prior to making a decision on which one is the best option for her. A sole proprietorship is an organizational form in which the individual has complete control over the business or organization. Along with having the opportunity of making all the decisions for the organization, the individual also has all of the liability that comes with the organization. Individuals starting a sole proprietorship will be held personally responsible for any and all debt created and is responsible for paying personal income taxes on any profits made. A