The Report Sole Proprietorship: * Liability - Unlimited Liability, the owner is personally liable for all the business debt and obligations. There is no legal distinction between owner and business. * Income Taxes - Tax planning can be difficult to take advantage of lower income tax rates, due to all the income generated by business is treated as personal income. * Longevity/Continuity - As long as the owner is alive the business can continue. * Control – The owner has full
Words: 1289 - Pages: 6
Legal & Ethical Environment of Business BUS 252-003 Winston Spencer Waters Submitted 11/21/2013 By Maria Andersen The intention with this paper is to examine and explore the three main types of business structures; sole proprietor, corporation, and partnership. During this paper, we will take a deeper look into each of these structures, discuss the advantages and disadvantages, and finally determine which is more beneficial to use for a startup company. The process of starting up a new
Words: 2349 - Pages: 10
include liability, taxes, continuity, control, profit retention, location, and other requirements. Sole Proprietorship – A sole proprietorship is the most commonly formed company in the United States. It is the easiest to create since the owner simply begins to conduct business transactions. It is beneficial to the owner because he remains utterly autonomous. There is no difference between the owner and the company. Disadvantages of a sole proprietorship include unlimited liability and inability
Words: 2633 - Pages: 11
discuss seven business types; sole proprietorship, partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporation, and will give a scenario for each. In addition, I will justify why the business form is preferred for the scenario given. Sole Proprietorship: Sole Proprietorship is the simplest form of business (Cheeseman, 2010, p. 530). In a sole proprietorship, the owner and the business are one. “Sole proprietorships are the most common form of
Words: 1751 - Pages: 8
Part A Sole Proprietorship A sole proprietorship is essentially a small business that is headed by one party or owner, referred to as an entrepreneur. As a sole proprietorship, the debt liability rests entirely on the owner. This means that they can be sued by creditors to collect business debts. Also, if the business owner has any unpaid personal debts, creditors may attempt to collect them from the business profits. Issues such as injuries, lawsuits, and torts that may arise will find the owner
Words: 1741 - Pages: 7
structures new owners typically chose from are sole proprietorship, partnership, and corporation. This paper will not cover a fourth type of business structure the limited liability company (LLC). Choosing the structure that fits best will help any business achieve its goals and run smoothly. A sole proprietorship is a business owned by one individual. Spouses starting a family business should be aware that only one of them can be considered the sole proprietor of the business, so this should be
Words: 544 - Pages: 3
Issues for Bus.Org Task 1 PART A Sole Proprietorship: Is one of the most popular business types in the U.S and also one of the simplest. There is no legal distinction between the proprietor and the business which means it is autonomous. Autonomy can be very beneficial in that it allows for creative expression, freedom and control but also allows for limitless liability for the owner. Liability: Because the business and the owner are one in the same the liability falls completely on the owner. All
Words: 1136 - Pages: 5
contemplates. It is, however, a question that must be carefully addressed because of the tax, managerial, legal and liability impacts that the business formation has. There are a number of legal forms that a business can take. The most common are sole proprietorship, general partnership, limited liability company or LLC, and C or S corporation. Sole Proprietorship Sole proprietorships are probably the simplest and cheapest forms of business organization. They do not require registration with local
Words: 1092 - Pages: 5
organized for profitable or charitable purposes. Business entities include organizations such as corporations, partnerships, charities, trusts, and other forms of organizations. Business entities are subject to state income tax depending on the laws of the state or states where they conduct business (taxes.about.com). There are three basic types of business structures: Sole Proprietorship, Partnerships, and Corporations (University of Phoenix, Films on Demand, 2011). Depending on the type of business structure
Words: 1018 - Pages: 5
Sole Proprietorship: Liability: The entire enterprise and all resources are owned and controlled by the owner. Any debts of the enterprise are the owners debts and must be paid from the owners personal funds. The proprietor is infinitely liable. Income Taxes: The proprietor must pay self employment tax. The business is will not be independently taxed and any income or lack of income must be reported on the owners tax return. The companies earnings must be taxed as well. Longevity or Continuity
Words: 1575 - Pages: 7
