PART A Sole Proprietorship A sole proprietorship is a business form that includes just one owner. This business form is special in that there is legally no difference between the business and the owner. They are considered one and the same. Although there are advantages of this form, such as flexibility in setting work hours and profits of the business remaining in scope of control, there are also many disadvantages. One prime example that is probably the most discouraging is liability. If
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issues, etc. There are several legal forms of business: sole proprietorship, partnership, limited liability partnership, Limited Liability Company, corporation, S corporation. Sole proprietorship In a first scenario a handyman who wants to get into business which will have little paper work and set up cost. The entrepreneur doesn’t have a partner and will be running the business alone. For this scenario the best business form will be sole partnership. This is a business with one owner which means
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government restrictions, and tax considerations. Sole proprietorship, partnerships, corporations, and S-corporations are four legal forms of business organization an entrepreneur may consider when forming a business. (Sitarz, 21) Advantages and Disadvantages of the four business forms of organization The most common and simplest form of business organization is sole proprietorship. It is the least regulated of all types of business structures. Sole proprietorship is the traditional unincorporated one-person
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2) Four categories of business enterprises are as follows: • Partnership A partnership is an agreement between two or more people to finance and operate a business for profit. Partnerships are relatively easy to establish; however time should be invested in developing the partnership agreement. A partnership agreement is a legal agreement between partners in a partnership which sets out the terms and conditions of the relationship between the partners, including: Percentages of ownership
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Business Law Sole proprietorship, is referred to as owning your own business entity and more or similar, sole proprietor and business owner are same. There is no legal distinction between the two; the business legal name is the same as the owners. However the business owner may obtain and conduct business under a fictitious name by filing a DBA also known as ‘doing business as’. The merits associated with sole proprietorship are: • Liability: The sole proprietorship while offering own complete
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include Sole Proprietorship, Limited Liability Companies, General Partnerships, S Corporations, and Limited Partnerships. This discussion will consider an explanation of how the business structures might and might not be advantageous. Sole Proprietorship is an advantageous business structure because entrepreneurs can start easily without incurring a high financial cost. In addition, entrepreneurs do not require operating documents or annual reports (Cody, 2007). Therefore, Sole Proprietorship will
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customer •Ability to grow due to increases in market demand. Special services for pet, milestone parties and celebrations. •Niche market; Vegetarian services and pet funeral arrangements. •Business growth not much competition. Weaknesses •Sole proprietorship lacks funds, Staff- unable to hire employees with low
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preferred business form is also present. Sole Proprietorship According to Cheeseman (2010, p. 529) “an entrepreneur is a person who forms and operates a business.” An entrepreneur starting a business independently is a form of sole proprietorship. The owner of the business is the sole proprietor. A recent college graduate who opens a mobile dog grooming service is an excellent example of a sole proprietorship. The graduate who has experience with animals from walking
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decision-making authority, and likely tax consequences. The possible structures of a business can be either a sole-proprietorship, partnership or a part of a corporation. A sole proprietorship is the easiest of all the structures. Should you decide to become a sole proprietor you would have complete control of the business and full authority over all business decisions. However, as the sole owner you would also be liable for any and all debts, losses, and other liabilities incurred. According to the
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LIT1 Task 1, Part A Sole proprietorship: A sole proprietorship is an inexpensive and easy to form business organization. This entrepreneurship gives the owner the ability to have flexibility in their schedule. The business owner of this organization will benefit from having full control and retains all the businesses profits. Negatively, the business owner is also personally responsible for all the debt. and liability the business may take on. In this organization if the owner dies, the
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