Part A: SOLE PROPRIETORSHIP: This business type is basically a business with one owner. Give a company a name and starting a sole proprietorship is simple. With this type of business all profits are the owners, but the burdens and liabilities are also the owners’ responsibilities. * LIABILITY- The liabilities are extremely high, from personnel injuries, to debt unpaid. If any part of your business suffers financially and not dealt with, the personal assets of the owner can subject to being
Words: 1844 - Pages: 8
Sole Proprietorship A sole proprietorship is the simplest form of business entity. Factually speaking it is not an entity at all in the way that a corporation exists as a legal entity. Rather, a sole proprietorship is the person conducting business. They are conducting business on behalf of themselves, they obligate the business personally, and they are personally responsible for all liabilities. Also, no special legal filings are needed outside of compulsory licenses that might be required
Words: 2101 - Pages: 9
Sole Proprietorship: Sole proprietorships are businesses that are owned and operated by one person. The business and the owner are one and the same, as there is no legal separation between the two. The owner would only have to register as a business if he were to operate under a fictitious name or if they provided services requiring a license. * Liability: As there is no legal separation between the owner and the business, 100% of the liability is on the owner. He or She would be responsible
Words: 1775 - Pages: 8
talk about these forms; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. I will try to develop scenarios in which each of these forms of business would be the preferred form. For each scenario, I will justify why the corresponding business form is preferred. Sole proprietorship is the first form of businesses and it is the simplest form of business organization. The Sole proprietorship and the owner of the businesses
Words: 1097 - Pages: 5
310.1.2-01-06 Sole Proprietorship: Sole Proprietorship is the most common and most simplistic type of business. This model of business the owner and the business are one and the same. A sole proprietorship is unincorporated. Every form of business has advantages and disadvantages. As the owner you can organize, name and take the business as far as your aspirations take you, a sole proprietorship has risks; the responsibility of time, personnel, scheduling, recruiting and accounting management
Words: 3101 - Pages: 13
organized. The complex world of business is filled with the pressures of running a business, profit margins, decision-making, liability, Income tax, longevity, government regulations, control, expansion and future of the business and countless other things. In the United States businesses can be organized into one of three basic legal forms. * Sole proprietorship's * Partnerships * Corporations These are further sub divided into different forms. Each form have certain characteristics that set
Words: 1272 - Pages: 6
Task 1 Part A Sole Proprietorship A sole proprietorship refers to a form of organization owned by a single individual. In this business, a single person makes all the decisions and does not have to engage a legal department to approve contracts. The owner of such a business can only use personal funds even though he or she may have separate checking and savings accounts for the business. The first characteristic of this form of business enterprise is liability. A sole proprietor suffers
Words: 2228 - Pages: 9
of business structure that will meet your needs. The three main types of business structure are sole proprietorship, partnership, and corporation. In the next few sections I will explain each type and describe the advantages, disadvantages and tax implications that you would encounter if you selected that type. Let’s begin with the sole proprietorship. Sole Proprietorship The sole proprietorship is the easiest and most cost effective type of business structure to set up, so if funding is a concerned
Words: 922 - Pages: 4
of business include sole proprietorship, partnership, limited liability company, S corporation, franchise and corporate form. However, depending on the type of business and the number of individuals involved in starting the business can determine what the best form of business to suit the organization. The advantages and the disadvantages must be weighed and thought out carefully in order to minimize risks and possible litigation issues that could arise. A sole proprietorship is the most basic business
Words: 2056 - Pages: 9
categorized into six different organizations. These business forms make up proprietorships, partnerships, corporations, and Limited liability companies. All forms of business have characteristics descriptive of each business form. Identifying the characteristics of each business while accounting for the advantages and disadvantages will help to clarify each form of business. 1. a. Sole proprietorship: A sole proprietorship is a company formed with the ideas and direction of one individual. This
Words: 2153 - Pages: 9
