Ronald Lyday (000337108) LIT1 Task 310.1.2-01-06 Part A (Rev. A) Sole Proprietorship In a Sole Proprietorship the owner is the one responsible for the ownership and conduct of all business. All decisions, whether good or bad, are made by the owner. Income taxes are assessed as personal income for the proprietor, which is at a higher rate than other forms of income. The company can be maintained for as long as the proprietor desires to conduct business on their own.
There are many advantages to being a sole proprietor. There are very easy to create, there’s no cost to create, or time involved. It’s as simple as selling goods or services, and start charging money in return. Some business may be required to obtain permits, to sell
A sole proprietorship is an unincorporated business owned by one person. The owner of a sole proprietorship is known as a sole proprietor. Sole proprietorship is easier and less expensive to start than corporations. It can be started without anything more formal than a decision or a handshake and you can conduct business under your own name or under a trade name. In this example, Owen will be the only owner and since he wants to have employees under this business form he is allowed to hire employees whereas if he was thinking of an S- Corporation he could not have any employees.
Legal Forms of Business Law/531 March 26, 2012 Judith C. Haggerty, J.D./ Esquire Legal Forms of Business The “American Dream” is composed of several elements. The elements will vary from individual to individual. Usually, the elements are own a piece of land, financial security and become a successful business owner. In order to complete the American dream it will be important to understand the various types of business structures that exist. Not every type of business will be ran the same, and depending on the type of business the individual is planning to open will also have an impact as to allowing partners, sole proprietorship, S corporation, franchise, and corporate form.
LIT1 Task 310.2.1-05 Part A and B Starting a business can be tough for anyone especially in this economy but the first step is to find the right business organization. The options are a sole proprietorship, a partnership, a corporation or a limited liability company. After deciding on which business organization you choose to be with then the next step is to weigh the pros and cons of each business organization to see which option would lead to the best chance of profits and success. Sole Proprietorship Sole proprietorships have been the most common option for many people starting out a new business. An individual is able to use his/her legal name for the business or come up with a different name as long as he/she files a d.b.a.
If they operate under a factious business name or sell goods or services requiring a license then the business files for licensing according to the nature of the business. This can be a sellers permit or a professional license. Advantages: Sole Proprietorships essentially have no formalities. Taxation is fairly simple, meaning that many of these businesses do not file separate business tax returns because they are not required to. The sole proprietor has the advantage of maintaining complete control over his or her business.
Riordan Manufacturing will never have to pay for service it is not using. Most traditional online computing services offer business services that are bundled. Accessing the Cloud, the company will only pay for services used while saving the company money. These three characteristics proves that cloud computing is efficient and has more benefit than traditional computing (TheCloudGuy,
All partners share in the decision making for the business. A partnership agreement is usually established in order to delegate the responsibilities of each partner such as who will make decisions for the business, how will profits and losses be shared, how much money and time each partner will contribute and even a plan in the event a partner chooses to terminate their share of the business. The main advantage of this entity is that it allows more expertise as well as financial support in order to make a business grow. The main disadvantage is that just like the sole proprietorship, the personal assets of each partner will not be spared if the company faces financial
Corporate form The main advantage in the corporate form is the limited liability. The corporation is not liable for the losses of the shareholders or the employees losing jobs in the company. Scenario The setup of a semiconductor corporation can be seen as a corporate form of business. They have limited liability to debts and obligations, unlike other forms of business. In this it helps in the investment of the huge amount of money.
Knowing the internal and external factors as a manager can make the difference between success and failure of a business. Managers should be flexible when making decisions within an organization. The organization I have selected is my friend’s business, a local automotive shop. His shop is growing and business is very busy. Constant improvements are being made in all areas of his business in order to help it succeed.