The Executive Angel was setup as a sole proprietorship in the state of Florida. After comparing sole proprietorship versus Limited Liability, the owner decided on sole proprietorship. The reason for setting up The Executive Angel as a sole proprietorship was it had one owner with little assets and profits. Because the company was set up this way there is no legal distinction between the owners profit versus the company. The company is taxed and liable just as if it was an individual. As The
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different form of business, enlist some of their main characteristics, and provide examples of possible scenarios for new business where these different legal forms of business can be used. Sole Proprietorship The sole proprietorship is the most simplest and common form of business in the United States, where the sole proprietor, is the business (Cheeseman, 2010, p. 530). Some of the advantageous characteristics of this legal form of business are the low capital requirements to start the business, the
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A. Sole Proprietorship Operating as a Sole Proprietorship as you are now does not protect your personal assets in the event a suit was brought against your company. Sole proprietorships do not differentiate between the business and the individual whom owns the business. In order to be recognized legally as a business you will need to file for an EIN (Employer Identification Number) this in effect is your business’s social security number. As a Sole Proprietor you are only obligated to pay
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business structures available to new business owners, there is sole proprietorship, partnership, limited liability company and corporation. This paper will identify each structure and list the advantages and disadvantages of each structure. Sole Proprietorship Sole proprietorship has no other owners to divide profits with, which allows a sole proprietor to use company funds in any way the individual see fit. Sole proprietorships are easier to set up out of the other structures and is easy to
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Subdomain 310.1- Business Law A1a. Sole Proprietorship- One person owns the business. Unlimited Liability -Under sole proprietorship, only one person owns the business and there is no difference between the business and the owner. The owner takes full liability of everything that happens when operating the business. If a customer slips and falls, the business owner will be liable for 100% of any liability incurred. The personal and business assets are intertwined so if the business is sued
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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
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1. This article discuss the advantages and disadvantages of three different ownership which are the sole proprietorships, partnership and corporations. Is it possible that a company start as a sole proprietorships, and turn to partnership and turn to corporations? If it is possible, how the process will be? What should owners of this company should do to turn their company to become partnership and corporations? 2. This article mentions that corporation need to pay tax twice. After the corporation
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in this paper we will only discuss four: sole proprietorship, partnership, LLC, and a corporation. A sole proprietorship is the most common business structure. This type of structure has one owner who is entitled to all profit and accrues all the losses. In forming a sole proprietorship there is no formal action. As long as there is only one owner it is easy to form a sole proprietorship. With the proper permits and license one can have a sole proprietorship structured business. Within this structure
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Organizations S E C T I O N 1 Sole Proprietorships The Role of Sole Proprietorships _______________________________________________________________________________________________________________________________________________. A ______________________ is an establishment formed to carry on commercial enterprise. Sole proprietorships are the most common form of business organization. Most sole proprietorships are small. All together, sole proprietorships generate only about __________________
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statements. The Advantages and Disadvantages of the Different Forms of Business Organization Sole proprietorship is a business organization that is owned by one individual. The advantages to a sole proprietorship is that all profits go to the business-owner and that the owner has full control of the business (Kimmel, Weygandt, & Kieso, 2011). There are also some disadvantages in a sole proprietorship-such as the owner is personally liable for all debts and obligations of the business. Another disadvantage
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