Scott January 12, 2014 Abstract This paper takes a look at the different business types that a person can get into. The person has an invention that will make life easier. The paper goes through the legal aspects of a sole proprietorship, partnership and a corporation. Know these will help the person to determine which would be better for them. Sole proprietorship is easily and inexpensive to establish. The owner can do business in their own name. It carries little ongoing formalities. The
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Entrepreneurial Finance Fin512 Fall 2014 1. (TCO B) Which of the following best defines a partnership? (Points : 5) A business owned and operated by one person A voluntary association of two or more persons to carry on a business for profit as co-owners The governing body for corporate activity An organization in which each owner has limited personal liability 2. (TCO D) The financial forecasting process used to project financial statements consists of which
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no restrictions on the operations of your business. General Partnerships: is a partnership that is formed with two or more people establishing a business to make a profit. Liability - since each partner is considered a general partner, each can be held personally liable for the partnership’s actions and debt. For example, if the business gets sued, the partners will be sued as a group. Income Taxes - with general partnerships each partner has to pay a percentage of taxes based on income percentage
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2), small businesses(chapter 5) but also a vision for the future and the business industry. As seen in chapter 2, vision is an important part of success. Olsen and Kvamme’s vision is to bring the industry to states like Michigan and Ohio. Their partnership shows that their joint vision is to change the way the consumer thinks and feels about the industry they see as only in the silicone Valley.Olsen and Kvamme believe in the midwest an want to show that technical businesses don’t only come from California
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to start a business, the owners think of what forms would be most advantageous for them. The different business structures are not simple and all serve a purpose (Parrino, R. 2012). The structures of business structures are, Sole Proprietorship, Partnership, and Corporation (Parrino, R. 2012). These business types all have different governmental requirements (DeFrancesco, R. 2006). The different necessities are their tax requirements, legal issues, personal findings and concerns as well as their financial
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| Sole Proprietorship | Description | A sole proprietorship business is the type of business where there is only one owner. It doesn’t require complicated filings like other corporations, and it allows for the owner to report both business income and expenses on their individual tax returns. | Two Advantages | Some of the advantages of starting a sole proprietor type business are: the ease of start-up and the cost effectiveness. There are also savings from tax filing, as it can all be done in
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Introduction The following paper will identify the different types of business structures. The paper will demonstrate of how each type of business structure would benefit the business owner and some possible disadvantages to certain business structures. Each type of business structure can help the business partners by protecting them both legally and financially. Business founders want to get their business, up and running as soon as possible by starting a business without exploring the different
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once Sole Proprietorship disadvantages * Owner is liable for all debts * Owner faces unlimited liability * Difficult to raise capital General partnership General partnerships are a form of business where 2 or more individuals agree to do business together. General partnerships may be formed by oral or written contract. * Liabilities: partners are jointly and severally liable for debts and obligations.(flat world knowledge,2013) Very similar to a
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business is generally simple, and inexpensive to start, thus it is the easiest and most common type of business. 2. General Partnership: A general partnership is when two or more individuals come together with their resources to form a business. These partners are both active within the business, and each take full liability for the business. • Liability: A general partnership is similar to a Sole proprietorship when it comes to liability. The co-owners of the organization are equally responsible
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owner doesn’t need to do much. Taking freelance work or simply telling someone you are a business is legally all you need to start. Sole proprietorship does not have all the rules and regulations of some other business organizations. General Partnership- This is formed when two or more people agree to form a business and share in the profits, losses and responsibilities as partners equally. Easy to set up and can be financed in more than one way. * Liability- Each partner is jointly liable
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