Business Structures Jaleesa Thomas University of Phoenix FIN/571 June 30, 2014 Professor Eric Hohl Business Structures When starting a business one of the first steps involves selecting the structure of the company. The three most common structures are sole proprietorship, partnership, and corporation. Successful entrepreneurs sometimes start as sole proprietors and grow their business into a corporation. The key to determining which business structure is most suitable for a company’s
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proprietorship is a type of business where there is no legal distinction between the business and its owner. This is the most common form of doing business in the United States ( Terence Lau and Lisa Johnson, 2015) | Two Advantages | There are many advantages to this type of business. First it is easy to create a sole proprietorship. The entrepreneur in charge simply starts the business. Another advantage is autonomy. The owner is able to decide what they want to do with the business, concerning hours,
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for all debts accrued by the business. This means creditors are entitled to recoup and debts through business and personal assets. • Income taxes: A sole proprietor files their business taxes along with their personal taxes. Typically when filing taxes the form that is files is the 1040. The owner would just need to file a Schedule C form along with their 1040. • Longevity or continuity of the organization: In the event that the owner dies normally the business dies also. Unless the owner
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To: Business Owner From: Jared Williams, Executive Assistant to the President Date: October 31, 2014 Re: Potential Business Model Recommendation I have completed my review the information regarding your company and considered the pros and cons of the available models. It is my recommendation that you convert your Sole Proprietorship into a Limited Liability Company. LLC Details A limited liability company is a relatively new business model that combines the protection of a corporation
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he was previously at before he went on leave. The employee requested back pay, but was denied by the new manager. -Conclusion: Company X was in full compliance of FMLA law. Because the company employs over 75 people, and the associate was a fulltime employee for 2 years, he was entitled to the leave of absence under FMLA law. Company X also let the associate return to his previous job and paid him the same rate of pay he had when he left. However, under the provisions of the Family Medical
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The Elijah Heart Center needs to make changes on cost-cutting, funding options for equipment, and funding options for capital expansion. Doing this simulation review it will show just how to go about making these changes to save money. I will explain as to why I choose what I did in this paper. The cost-cutting options I choose were changing the skill max and reducing agency staff. The reason as to why I choose changing the skill max is to allow the nurses to focus upon their more important tasks
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As Director of Human Resources for Company X, I have been directed to research and make recommendations concerning three personnel issues. These issues pertain to possible violations of the Family Medical Leave Act of 1993 (FMLA), Age Discrimination in Employment Act of 1967 and the Americans with Disability Act of 1990. Situation A involves the Family Medical Leave Act of 1993 and Employee A. Employee A has been employed by our company for two years and requested leave to assist at home due
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Sole Proprietorship Description Sole proprietorships are business entities that are owned and managed by one person and there is no legal distinction between the business and owner. Two Advantages Easily formed - cheaper to start-up and less laws regulating the business Tax benefits - owner is not required to file a separate business tax report, but can file on personal returns Decision making - owned and operated by one person, so no complications when making decisions Two Disadvantages
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proprietorship is an inexpensive and easy to form business organization. This entrepreneurship gives the owner the ability to have flexibility in their schedule. The business owner of this organization will benefit from having full control and retains all the businesses profits. Negatively, the business owner is also personally responsible for all the debt. and liability the business may take on. In this organization if the owner dies, the business dies also. • Liability: In a sole proprietorship
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benefits associated with being taxed as a business. While a sole proprietorship, in some states, can be owned by more than one person, Betty and Betsy will need to aware of their actions so that the IRS and the state do not have a reason to imply a partnership, or other business form, due to their actions of holding themselves out as anything other than independent. (Unif. Partnership Act §202(c)(3). Should this occur, Betty and Betsy could be subject to business and tax requirements they had not anticipated
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