define sole proprietorship, partnership, corporations, and limited liability companies, discuss the advantages and disadvantages of each, and discuss which the most important appropriate form of ownership is for an aggressive entrepreneurial firm. Define A sole proprietorship is defined as a form of business organization involving one person, and the person and the business are essentially the same. Sole proprietorships are the most predominant form of business organization. Partnership is defined
Words: 699 - Pages: 3
form its owners choose will affect both the company’s and owners’ legal liability and income tax treatment. It is important that the business owner considers these different forms of business organizations: sole proprietorship, partnership, and corporations. Various legal structures are available to assist business owners with the organization of their business. These legal structures make provisions for the business’ liability, income taxes, continuity, control, profit retention, and regulatory requirements
Words: 2373 - Pages: 10
|Control |Liability |Continuity |Taxation | |Entity | | | | | | |Partnership | A general partnership | Partners | Tort liability: | the usual rule is that| Partnership does not | | |is a business entity in | |Partnership is liable |the death or withdrawal|pay
Words: 1474 - Pages: 6
PART A Sole proprietorship: A sole proprietorship has one owner and is unincorporated. Some advantages that the owner of a sole proprietorship might enjoy include total control of running the business, receiving all proceeds of the business, and multiple tax benefits. Disadvantages that the owner of a sole proprietorship might encounter include sole responsibility and liability for the business and limited access to funds and resources. • Income taxes – The business does have a separate income
Words: 1418 - Pages: 6
forms: a. Sole proprietorship b. General partnership c. Limited partnership d. C-corporation e. S-corporation f. Limited liability company Sole Proprietorship: * Liability – can be held independently legally accountable for any business-related responsibilities. * Income taxes- sole proprietors reports all business income or losses on their individual income tax return -- IRS Form 1040, with Schedule C for small business * Longevity/ Continuity- Sole proprietorships only exist
Words: 1572 - Pages: 7
forms of business are sole proprietorship, which is already in use by the client; general partnership; limited partnership; c-corporation; s-corporation; and Limited Liability Company. The client is currently unsatisfied with the sole proprietorship, which is the easiest type of business to begin and to run, but which doesn’t fit the client’s needs any longer, since the business has expanded exponentially over the past few years. Sole Proprietorship: The sole proprietorship does have several advantages
Words: 1908 - Pages: 8
Deciding on what type of business entity to have one will have to look at the different types of business structures and then decide accordingly. There are vast differences between the sole proprietorship, partnership, limited liability company (LLC), and corporation and understanding each is vital. A sole proprietorship is a business entity that is solely dependent upon only one owner. Once a business plan is made and the proper licenses have been obtained from the state that the business will be
Words: 1415 - Pages: 6
Sole Proprietorships Sole Proprietorship is a business entity owned and operated by one individual. This type of business organization is relatively inexpensive to start. The pros of the sole proprietorship are easy to start, the owner is able to retain his profits and the owner has sole control of business decisions. The cons of sole proprietorships are unlimited liability, limited financial resources, harder to get additional financial resources for example loans, limited growth, and limited life
Words: 1535 - Pages: 7
preferred business form is also present. Sole Proprietorship According to Cheeseman (2010, p. 529) “an entrepreneur is a person who forms and operates a business.” An entrepreneur starting a business independently is a form of sole proprietorship. The owner of the business is the sole proprietor. A recent college graduate who opens a mobile dog grooming service is an excellent example of a sole proprietorship. The graduate who has experience with animals from walking
Words: 1382 - Pages: 6
include: sole proprietorship, partnerships, and corporations. When starting a business, it is very important to weigh out the pros and cons of each type to decide which type would be best suit your particular business. Each type has its advantages and disadvantages that need to be considered before deciding which would be best moving forward. I will discuss the advantages, disadvantages, and differences of each type of firm. First, there is a sole proprietorship. “A sole proprietorship is someone
Words: 812 - Pages: 4
