determines which income tax return form one has to file. The most basic forms are to file. Sole proprietorship, partnership, Corporation, and Limited Liability Company (LLC) which is a new business structure allowed by state statues” (irs.gov, 2014). 1. Sole Proprietorship 2. Partnership a.) General Partnership b.) Limited Partnership 3. Corporation a.) General Corporation b.) S-Corporation 4. Limited Liability Company (LLC) Each business structure has its own advantage, limitations, and disadvantages
Words: 376 - Pages: 2
personal liability, reducing taxes, or becoming more tax efficient drive a business owner’s decision to change the way a company does business.” The options for your type of entity include sole proprietorships, public held corporations, private held corporations, limited liability corporations (LLC), franchises and limited partnerships (LLP). Each type of business runs the risk of being sued for numerous reasons. However, the type of business you own will determine your personal liability exposure
Words: 1415 - Pages: 6
as one of the following: Sole Proprietorship, Partnerships, and Corporations. Small businesses are an important source of new (and often well paid jobs). In recent years, small business has accounted for 40 percent of all new jobs in high technology sectors. (Business Essentials, Seventh Edition, n.d.) Sole proprietorship, which is how most small businesses start, is owned by one person. Usually he or she has daily responsibility for running the business. Sole proprietors own all the assets
Words: 1421 - Pages: 6
selecting the structure of the company. The three most common structures are sole proprietorship, partnership, and corporation. Successful entrepreneurs sometimes start as sole proprietors and grow their business into a corporation. The key to determining which business structure is most suitable for a company’s goals is viewing the advantages and disadvantages of each structure. Sole Proprietorship The Sole Proprietorship has the most simple business structure to operate under and is not a legal
Words: 553 - Pages: 3
accounting and legal implication as well as the structure and liability of the business. In this paper the focus will be on establishing my wedding photo studio, the advantages and disadvantages of different business structure and the consequences associated with each form of business organization. Sole proprietorship is controlled by only one person. The owner is responsible for all debts of the business (The basic of sole proprietorship, 2005). And the income or loss will be reported on his or
Words: 1246 - Pages: 5
entities? Sole Proprietorship, Partnership or a Corporation. A sole proprietorship is when one individual owns a business and is the person responsible for it. This person holds all the responsibility in liabilities and liability claims, but will also be the sole person to collect profit, if there is any. Sole proprietorships are subject to few government regulations and are easy to start, however, there is unlimited liability and capital can be very difficult to raise. A partnership is similar
Words: 350 - Pages: 2
Sole Proprietorship A sole proprietorship is the easiest and most common structures selected to start a business. It is an independent business maintained and run by one individual with no distinction between the business and you, the proprietor. Benefits of a sole proprietorship it’s easy and economical to method, cost are minimal, with legal cost limited to obtaining the necessary license or permits. Weaknesses of a sole proprietorship are unlimited personal liability, hard to advance currency
Words: 467 - Pages: 2
Sole Proprietorship This is a business run by one individual for his or her own benefit. It is the simplest form of business organization. Proprietorships have no existence apart from the owners. The liabilities associated with the business are the personal liabilities of the owner, and the business terminates upon the proprietor's death. The proprietor undertakes the risks of the business to the extent of his/her assets, whether used in the business or personally owned. Single proprietors include
Words: 849 - Pages: 4
MW 10:15 Business law Business Formation Assignment (ch. 19&20) Sole Proprietorship What legal liability and protection comes with this form of ownership? In a sole proprietorship the owner of the business has full liability for anything that happens within the business. The business isn’t its own entity therefore it all falls on the sole owner. Any issues, liabilities or losses that incur within the business are the owner’s responsibility. How is this type of business formation
Words: 1177 - Pages: 5
organization Answer: c Diff: E [i]. Which of the following statements is true? a. One of the benefits of incorporating your business is that you become entitled to receive unlimited liability. b. Sole proprietorships are subject to more regulations than corporations. c. Sole proprietorships do not have to pay corporate tax. d. All of the statements above are correct. e. None of the statements above is correct. Firm organization Answer: c Diff: E [ii]. Which
Words: 4360 - Pages: 18
