structures to choose from such as sole proprietorship, partnership, limited liability partnership, limited liability company, corporation, S corporation, and franchise. To assist new business owners in choosing the appropriate structure, business owners will need to develop scenarios in which each business structure is preferred. Business owners also need to justify why the business structure is preferred. Sole Proprietorship Sole proprietorship is the most common and the simplest
Words: 2219 - Pages: 9
Sole Proprietorship: There is no legal difference between the Sole Proprietorship and the owner. They are easy to create and can mature as quickly or slowly as the owner wants. There can only be one owner and raising capital can be difficult, so they seek funding from financial institutions. ● Liability The Sole Proprietor is personally responsible for all debts and obligations. Creditors can claim personal assets of business owners and can sue if there is a breach of contract. Income Taxes
Words: 1708 - Pages: 7
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: 3972 - Pages: 16
11, 13 Part A Sole Proprietorship: This form of business is the most common form of new business startup. Legal and tax issues are basic and can be followed without significant assistance from external sources. The business and owner are one in the same and all liabilities will fall upon them personally. The primary key to being a sole proprietor is the owner maintains independence in the decision making of the business and how he or she implements their business plan. LIABILITY: Individual and
Words: 4222 - Pages: 17
announced plans to release funding to individuals for use in starting up small businesses. Starting a new business requires an understanding of the advantages and disadvantages associated with the different forms of business which include sole proprietorship, partnership, C-corporation, and S-corporation. Although here are many benefits to each form of business, there are also consequences ranging from tax implications, legal implications, and accounting implications. To make the best choice regarding
Words: 1050 - Pages: 5
2-01 through 310.1.2-06 Business Forms Sole Proprietorship – Sole proprietors are individuals doing business on their own. They have no partners or shareholders. A sole proprietor may have a free-standing business where he works or he may be a contractor or freelancer and travel as near or far as he pleases. If he chooses to move to another location or State, he can continue his business there. Some advantages to this type of business are that the sole proprietor makes all business decisions,
Words: 2386 - Pages: 10
properties, as well as some areas that are similar to all. In this paper, I will give scenarios of the following legal forms of business: sole proprietorship, limited liability partnership, Limited Liability Company, S corporation, franchise and corporate form. This paper will also discuss the justification as to why this business form is preferred. Sole Proprietorship. Suzie owns a shop that does body wraps that helps individuals have slimmer waists and thighs. People are wrapped like mummies and
Words: 1295 - Pages: 6
THE SOLE PROPRIETOR An unincorporated business owned by one person is called a sole proprietor. Others may be hired to help but the sole proprietor runs the business directly. The destiny of the company is ultimately on the shoulders of the sole proprietor. Managing, sales and finance are all performed by the sole proprietor. There is no need for any formalities or agreements when the business is run by one person. The characteristics of a sole proprietorship are the adequacies of credit and
Words: 1175 - Pages: 5
structures include sole proprietorship, partnership, and corporation. Sole Proprietorship Sole proprietorship is a business owned by one person. It is the easiest, least expensive, and least regulated business structure to start. The advantage of a sole proprietor include not having to share the profits or control of business decisions with anyone else. However, the disadvantage is that sole proprietors have unlimited personal liability for the business debts and obligations. Partnership. A partnership
Words: 565 - Pages: 3
protection. Asking what type of business might actually seem line a silly question. The answer is a restaurant! However, the question is not quite that simple as there is four different forms of business organization: Sole Proprietorships, Partnerships, Corporations, and Limited Liability Corporations (Riley & Associates, 2011). Exhibiting advantages and disadvantages, each business type aids and
Words: 1320 - Pages: 6
