Chapter Six, Problem # 1 The benefits of keeping the business as a sole proprietorship are that the revenue will only be taxed twice, that the proprietor will be in whole control of the business, and that there are less laws and guidelines shake sole proprietorships. The disadvantages of keeping the business as a sole proprietorship are that the owner will have full legal responsibility for any responsibilities the business incurs, that the owner cannot go to the open to raise assets via trade equity
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several pros and cons that one must weigh against each other. This company has become quite profitable considering its small size, and as such, you have been considering changing business forms to lessen the disadvantages that come along with a sole proprietorship. There are many avenues of approach to accomplish this, but after analyzing your situation I believe that incorporating into an S-corporation would be the ideal solution for a number of reasons. To begin with, you expressed concerns about
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Running head: Unit 1 Unit 1 Assignment AC507 Corporate Tax Decisions and Strategies Unit 1 Assignment #12: What are three characteristics of Sole Proprietorships? * One-owner business (Dennis-Escoffier & Fortin, 2013). * Proprietor has unlimited liability (Dennis-Escoffier & Fortin, 2013). * No formal filing with the state (Dennis-Escoffier & Fortin, 2013). * May have no employees or can be a large business with many employees (Dennis-Escoffier & Fortin,
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Consequence of Business Structure Sole Proprietorship • 75% of businesses make up this type of structure • One owner and small number of employees • Simple to start • Least regulated • Owner makes all decisions • Owner keeps all profits • Owner responsible to pay all bills • Owner has unlimited liability • Equity of business is tied to owner’s personal wealth • Ownership is difficult to transfer • Difficult to raise money for the business Sole
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Sole Proprietorship: Online Company. This would be the best business model for our company since we are innovating and creating a new business based on drone technology and by providing farm fresh eggs directly to consumers. As a sole proprietorship we control the business from the suppliers, inventory, marketing and delivery. Also as a sole proprietor we will be able to make important company decisions without answering to partners, stock holders or a franchise board. The disadvantage of being
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tax information. We must be aware that there is more than just one type of entity and determining what type of business to become can have some legal implications and therefore must be reviewed thoroughly. II. Types of Entities A. Sole Proprietorships 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities B. Partnerships 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities
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clothing boutique “Placar”. Placar is a boutique that sells unique business clothing. The store is designed to catch the eye of the fashionable business individuals. It is a smaller, unique New York and Company. The basic legal environment is a sole proprietorship business. There is one owner who accepts all profits and loss of the company. The business and owner’s personal tax return are one and the same. If the owner decides to sell there are no meetings held because the owner makes all of the business
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they are the most common type of firm in the world. In 2007, an estimated 71% of businesses in the United States were sole proprietorships, although they generated only 5% of the revenue An owner who cannot afford to repay a loan for which he or she is personably liable must declare personal bankruptcy For most growing businesses, the disadvantages of a sole proprietorship outweigh the advantages For such enterprises, the partners’ personal liability increases the confidence of the firm’s
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A business undertaking is an organisation which is engaged in some industrial or commercial activity. It represents an institutional arrangement for carrying on any kind of business activity. It may be owned and controlled by a single individual or by a group of individuals who have entered into a formal or informal agreement to jointly conduct the business. Every business undertaking is a separate and distinct business unit. It has its own identity and separate ownership. It can be distinguished
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upholding itself to high ethical standards. Mama Dukes Soul Food is Café currently operating as a sole proprietorship by Charles Drayton. A sole proprietorship is a legal form of business ownership where there is no legal distinction that separates the sole owner’s status as an individual and as a business owner (Boone & Kurtz, 2012). It is the most common form of business ownership. As a sole proprietorship, there are no initial filing fees to start, minimal legal requirements, are easy to dissolve
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