Sole Proprietorship Sole proprietorship is the most common and simplest form of business. It is a business of one, where the individual represents the business legally and fully (Zahorsky, 2013). Setting up a sole proprietorship does not require registration of the business however, if you are planning to use another name or business name to operate your company, state laws will require a trade name registration or filing of your company name. The advantages of a sole proprietorship include:
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Chapter 3 Tax Planning Strategies and Related Limitations SOLUTIONS MANUAL Problems [LO2, LO3 PLANNING] Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $20,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 40 percent this year and next year, and that she
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business structures a person could create when deciding to start a business. Sole proprietorship, partnership or a corporation are the structures described below. This paper will cover some of the benefits and disadvantages each structure could pose and in what capacity one option may be more advantageous than another. Sole Proprietorship A sole proprietorship is a way for someone to start a business where he or she is the sole owner and controller of the company. One benefit is he or she will be the
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business structures are, Sole Proprietorship, Partnership, and Corporation (Parrino, R. 2012). These business types all have different governmental requirements (DeFrancesco, R. 2006). The different necessities are their tax requirements, legal issues, personal findings and concerns as well as their financial obligations (Corporate Business Structures, 2011). This paper shows the structures and overview of business. Sole Proprietorship Sole proprietorship is generally a business owned
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Small Business Idea Paper ACC/561 Anne Holland University of Phoenix Michael De Marco July 16, 2012 Small Business Idea Paper When having the excitement of starting a business, there are several factors and steps to go through before getting the plan started. In the fallowing paper bravely describe our business plan for our new company. We will mention some of the factors that go alone with the process of starting a business. Therefore, summarizing in a substantial way the different types
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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
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Organization “Sole proprietorship is the simplest and most general structure chosen to start a business. It is an unincorporated business owned and run by one individual” (Small Business Administration, 2014, para. 1). One main advantage of sole proprietorship is having one owner, which means one would be entitled to all the profits. Another advantage to a sole proprietorship is that one can make all the business decisions without consulting with anyone. However, one who chooses a sole proprietorship assumes
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1 Part A 1. Sole proprietorship: This type of business is known to be the easiest business for an individual to develop. A sole proprietorship is owned by one person, who is the person that will make the decisions in regards to the business and does not share any responsibilities with anyone else as the business owner. • Liability: One person is liable for the debts of this type of business, this will include their personal assets if necessary. • Income Taxes: Sole proprietorship is taxed as
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the scenario issues will also be given. I will discuss the three business structures Sole Proprietorship, Partnership, and Corporation. The advantages and disadvantages of each business structure and I will provide examples so that these differences will be identified. In this manuscript all structures will be defined and researched and based on the scenario issues I will explain why I choose the Sole Proprietorship as the business structure that would be the most successful. In the final part of this
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already established companies. In order to fully commit to this mission, Image Solutions must provide a foundation toward creating its own success and sustainability. Therefore, in order for the consulting company to thoroughly consider whether a sole proprietorship, partnership, Limited Liability Company or an S corporation is most suitable for the consultant business, the founder must first comprehend the advantages and disadvantages, while being aware of the legal, liability, and tax implications, of
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