of business ownership: sole proprietorships, general partnerships, C corporations, and limited liability companies. Sole Proprietorships: One Owner. Personal income will become taxed in business General Partnership: Two or more people can share profits and liabilities; it is the same as sole proprietorship C Corporations: Pays Federal and state income taxes on earnings Limited Liability Company: Hybrid between partnership and a corporation, combining limited liability advantage of a corporation
Words: 288 - Pages: 2
include Sole Proprietorship, Limited Liability Companies, General Partnerships, S Corporations, and Limited Partnerships. This discussion will consider an explanation of how the business structures might and might not be advantageous. Sole Proprietorship is an advantageous business structure because entrepreneurs can start easily without incurring a high financial cost. In addition, entrepreneurs do not require operating documents or annual reports (Cody, 2007). Therefore, Sole Proprietorship will
Words: 562 - Pages: 3
most common methods of business operations are as sole proprietorships, partnerships, limited liability companies and corporations. As such, after careful review and revision of the different business organizations, I have decided that I would establish a Limited Liability Company (LLC). A Limited Liability Company, quite simply is a company whose liability is limited. That’s the short version. The longer version is that a limited company is a type of company which when set-up allows
Words: 2431 - Pages: 10
following is an explanation of six types of business models. I will explain the advantages and disadvantages, liability, incomes taxes, longevity, control, profit retention. Location and or convenience and burdens. In conclusion, the reader should have a clear understanding and overview of the six types of business forms. SOLE PROPRIETORSHIP The overall benefits of a sole proprietorship are the flexibility and inexpensive way you can organize and control the company. The owner can create their
Words: 1696 - Pages: 7
SOLE PROPEITORSHIP: This is the most common form of business today. The sole proprietorship is owned by a single individual who makes all of the business decisions when it comes to the operation of the business. Sole proprietorships are not legally differentiated from the owner; therefore the owner is legally liable for any business debts that are incurred or any lawsuits brought against the business. It is also much harder for sole proprietors to obtain credit since they are using their own
Words: 1775 - Pages: 8
In this memorandum you will find that I have thoroughly examined the most viable options of business entity formation for Erin P Photography to show that forming a limited liability company would be the most appropriate choice for our client. I then examined the available options of federal tax regime selection for limited liability companies to find that federal taxation as an S corporation is the most appropriate and beneficial choice for the firm’s new client, Erin P Photography. The client
Words: 3208 - Pages: 13
Submission for LIT1 TASK1 PART A SOLE PROPRIETORSHIP: It is an unincorporated business with one owner who pays personal income tax on profits from the business. With little government regulation, they are the simplest business to set up or take apart, making them popular among individual self contractors or business owners. The benefit of the sole proprietorship is the tax advantage. The disadvantage of a sole proprietorship is obtaining capital funding. - Liability: The owner is personally liable
Words: 1831 - Pages: 8
different forms of business. They are proprietorship, partnership, corporation, limited liability company, and cooperative. The three major forms of business are proprietorship, partnership, and corporation. With proprietorship (also known as sole proprietorship), the business is only owned by one person. This person assumes all of the responsibility for the business. They also receive all of the profit. According to Melicher, & Norton (2014), “Proprietorships are the most widely used form although
Words: 987 - Pages: 4
forms of business ownership they are sole proprietorship, partnership and corporation. With each form of business ownership comes different risks, advantages and disadvantages. Which form of ownership you decide to choose depends on your desire for control and your tolerance for risk. Your original choice of business ownership may change as your business begins to grow. The first major form of business ownership is sole proprietorship, in a sole proprietorship one person owns and operates a business
Words: 1531 - Pages: 7
organized. An entrepreneur is the person or persons who form a business and the type of business they form is dependent upon their particular needs. Sole Proprietorship The simplest form of business organization is the sole proprietorship. The business and the business owner are one entity. It is very easy and inexpensive to form a sole proprietorship. As a result, this is the most common type of business in the United States. There are also other advantages to doing business this way. The owner
Words: 1426 - Pages: 6
