are: (sole) proprietorships, partnerships, and corporations. Sole proprietorships are owned by an individual who makes all the decisions about the business and therefore, pockets the revenue that is made. Sole proprietorships are the most common form of business that represents one individual owner with few legal responsibilities or requirements. Other advantages of forming a proprietorship is that they are easy to form, operate, and more affordable to form. Simply put, a sole proprietorship is
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Chapter 28 Employee vs. Independent Contractor Employee – If the employer exercises a considerable amount over the details of the work, you have an employee status. If the work is usually done under the employer’s direction, you have an employee status. The employer supplies the tools. If the person is employed for a long period of time, you have a employee status. If the method is by time period, you have an employee status. An employee may not require as much skill as an independent contractor
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office is located in New York City, New York. During 2009, Alex and his wife, Aubrey, used their personal jet to travel to their lumber farm in Oregon 15 times a year. The lumber farm is operated in a business like fashion and is reported as a sole proprietorship on their Federal Form 1040. Using their personal jet, they traveled to seven computer symposia, to their Bora Bora property twice and stayed there for several weeks each time. They also traveled to Aspen, Colorado 8 times during the winter months
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the legal aspects of a sole proprietorship, partnership and a corporation. Know these will help the person to determine which would be better for them. Sole proprietorship is easily and inexpensive to establish. The owner can do business in their own name. It carries little ongoing formalities. The sole proprietor does not need to pay unemployment tax on themselves. Owners can freely mix business or personal assets. These are some of the advantages of a sole proprietorship, now for the disadvantages
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Asian Social Science; Vol. 10, No. 21; 2014 ISSN 1911-2017 E-ISSN 1911-2025 Published by Canadian Center of Science and Education The Situations of Sole Proprietorship, E-Commerce Entrepreneurs and Trends in Their E-commerce: A Case Study in Thailand Pattarawadee Permwanichagun1, Sumeth Kaenmanee1, Aree Naipinit1 & Thongphon Promsaka Na Sakolnakorn2 1 Faculty of Management Science, Khon Kaen University, Khon Kaen, Thailand 2 Institute for Peace Studies, Prince of Songkla University
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most basic of all business legal structures is the sole proprietorship. For new start-ups the choice of becoming a sole proprietorship is the simplest of all business forms but is it the best? I would talk about the pros and cons of a doing business as sole proprietorship. A sole proprietorship is a business of one without corporation or limited liability status. The individual represents the company legally and fully. Common proprietorship structures include part-time businesses, direct sellers
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structures new owners typically chose from are sole proprietorship, partnership, and corporation. This paper will not cover a fourth type of business structure the limited liability company (LLC). Choosing the structure that fits best will help any business achieve its goals and run smoothly. A sole proprietorship is a business owned by one individual. Spouses starting a family business should be aware that only one of them can be considered the sole proprietor of the business, so this should be
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that is chosen can affect the profitability, risk, and value of the firm (Madura, 2004). Sole proprietorship, as the simple and easy to form type of business, is a business that is owned by one person. The vast majority of small business starts out as sole proprietorships. Sole proprietors own all the assets of the business and the profits generated by it. Most small business owners prefer the proprietorship because it is simple to enter, operate, and terminate and provides for relative freedom of
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Danisha Williams ACC 537 Paper 1 October 29, 2011 Accounting is very important part of business aspect. This paper will discuss four different topics of accounting: generally accepted accounting practices, effective accounting information, the difference between accrual based accounting and cash basis accounting, and finally the different types of business structure and defining each structure. The topics above will provide accountants with the knowledge that is need in order to be successful
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Explaining Basic Accounting Concepts and Business University of Phoenix Introduction Accounting has become an indispensible part of today’s economy. It is being used to keep a track of company’s profit or loss, assets, liabilities and owner’s equity. Financial accounting, on the other hand, is to prepare financial reports to external parties such as: investors, creditors, and governmental agencies. However, prior to reporting any information to external users, financial accounting must
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