The advantages to a sole proprietorship are, there is no startup cost, and you just simply start collecting money for exchange of services or goods. You set your own hours. You decide how much or how little you work. You also decide what contracts to enter. Disadvantages of a sole proprietorships are, you can’t transfer or sell the business.
A sole proprietor however does not necessarily have to run the business him, the owner can have others oversee and run the operations of the business just not as a partner, the owner is the overall decider of what will happen and will dictate the businesses future. This type of business form is the most widely used throughout the country, however it is not a form of business that is necessarily run with a large employee count. Rather it tends to be used with companies of one-person or a small number of employees. Advantages * Simple – start up is basically easy; the only legal item needed at first is state or local permits and licenses. If you want the business to have a name other then your given name you can file a request for that.
| LIT 1 Task 310.1.2-01-06| By: Bryan Luttman| | 12/01/2012| LIT 1 Task 1 Part A Sole Proprietorship - It is a business that identifies itself with the owners name or a fictitious name. It also names the owner responsible for its debts. A sole proprietorship is not a legal entity and is the simplest form of under which a business can operate. The sole proprietorship is the easiest and most popular form of business for small business owners. The owner does not need to register his or her name and get a local license in order to do business, unless it is under a fictitious name.
Running head: Business Law Rachel Lavender Western Governors University 2/21/11 PART A Sole Proprietorship A sole proprietorship is how most business entities begin. This type of business is owned and operated by one person. The main advantage of this type of business is that the owner does not need to get the approval of a partner or board in order to make decisions. A significant disadvantage is that, in a sole proprietorship, there is no separation from the business and personal assets, therefore, there is unlimited personal liability to the owner’s personal assets. · Liability-There is no difference between personal and business assets.
In Delaware however, no minimum capital is needed to incorporate, resulting in an inexpensive incorporation. In addition, the Delaware Corporate Dept provides a streamlined process to incorporate. The corporate officers never needs to step foot in the state and annual meetings can be held anywhere in the world. Unlike some states that require at least three people to fill official corporate roles, in Delaware, one person can be the officer, director and shareholding at the same time. But the major reasons for Delaware’s dominance in the incorporation of businesses, is due to the quality of Delaware’s courts and judges.
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.
• Income Taxes – being a sole proprietor gives the individual the option to file taxes under a separate employer identification number. The other option is to file their return normally and just fill out an IRS Schedule C to show profit or loss for the business (Smith, 2011). • Longevity/Continuity – One of the main issues of longevity in regards to sole proprietorship is that it dissolves when the owner dies so it makes it not possible to have continuity (Joseph, 2011). • Control – one of the great advantages of sole proprietorship that a person doesn’t have with a partnership or corporation is that you don’t have to answer to anyone but yourself in our decisions. You have
The hitchhiker is actually twenty-four years old and claims to be named Alex and to come from South Dakota. Alex seems to be carrying a light load for someone planning to live off the land for a few months, as he says he will do in Denali National Park. As Alex elaborates on his plan, Gallien tries to make him change his mind. Gallien is certain that Alex is not prepared for life in the Alaskan outdoors. Gallien even offers to buy him some decent gear, but Alex refuses.
For one, American Life League usually is tax exempt. They can offer products at a discount since they don't have the expense of taxes, and sometimes they can offer products to buyers who pay no sales tax on the purchase. American Life League often has a volunteer staff in many roles artists, canvassers, attorneys. Volunteers can mean an enormous savings to the business, which is particularly important to a small nonprofit. The board of directors must by law be composed of volunteers, which can be an advantage to the company.
On the other word, this group of leisure class people usually would not produce tangible goods or any other goods, which have intrinsic worth. (The intrinsic worth in this content refers to produce a tangible unit by themselves) This group of people can be a ruler, warrior, priest or wealthy entrepreneur nowadays. One interesting characteristics of this leisure class is it exists when the society accumulates sufficient or excess amount of goods to support a group of “non-productive” people, which in this case, the leisure class. In the history of evolution, human race is the only living creature in the earth that does not required to compete with other species to struggle for a room to live. However, this does not mean we do not need to face any competition throughout our life.