Sole Proprietorship: Sole Proprietorship is a very common form of small business organization. Benefits include having complete and total control as to how the business is run, marketing, hours, as well as the immediate dissolution of the business. Disadvantages range from personal liability for the business. A sole proprietor is also held responsible for all taxes for the business as personal income. Liability: A sole proprietor is held personally liable for any errors or damages caused by the
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Part A Sole Proprietorship A sole proprietorship is essentially a small business that is headed by one party or owner, referred to as an entrepreneur. As a sole proprietorship, the debt liability rests entirely on the owner. This means that they can be sued by creditors to collect business debts. Also, if the business owner has any unpaid personal debts, creditors may attempt to collect them from the business profits. Issues such as injuries, lawsuits, and torts that may arise will find the owner
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LIT1 Task 1 part A Sole Proprietorship- This is the most common way to do a startup business in the US. There is no distinction between the owner and the business. This is owned by one person * Liability- The owner of the business is solely responsible for all liability (unlimited liability) * Income Taxes- The owner of the business pays taxes on the income generated as ordinary income. For tax purposes, all income needs to be reported on their personal tax forms. * Continuity-When
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